NEWS RELEASE

Nippon Steel Corporation Issues Green Bond

Mar. 03, 2023

Nippon Steel Corporation

Nippon Steel Corporation announced today that it has determined the terms and conditions for the issue of its 7th and 8th Series of Unsecured Straight Bonds (with inter-bond pari passu clause)(Green Bond) as outlined below.

1.Summary of the Green Bond

Series name	Nippon Steel Corporation 7^th Series Unsecured Straight Bonds (Green Bond)	Nippon Steel Corporation 8^th Series Unsecured Straight Bonds (Green Bond)
Total amount of issue	JPY 30 billion	JPY 20 billion
Denomination of each bond	JPY 100 million
Issue price	100% of the principal amount
Redemption price	100% of the principal amount
Interest rate	0.564% per annum	1.150% per annum
Maturity date	March 17, 2028	March 18, 2033
Offering period	March 3, 2023
Payment date	March 9, 2023
Method of offering	Public offering in Japan
Method of redemption	(1)Bullet maturity (2)Retirement by purchase
Collateral	The bonds are not secured by any pledge, mortgage or other charge on any assets or revenues of the Company or of others, nor are they guaranteed. There are no assets reserved as security for the bonds.
Financial covenants	Negative pledge clauses (with inter-bond pari passu clause) attached
Interest payment dates	March 20 and September 20 of each year
Use of proceeds	Funds for production facilities for non-oriented electrical steel sheets for eco-friendly car motors. (A part of the proceeds will be allocated to replenish cash reserves previously used for to fund the construction of the cited production facilities)

Note: This news release has been prepared for the sole purpose of publicly announcing the issuance of the Nippon Steel Corporation’s 7th and 8th Unsecured Bonds, and not for the purpose of soliciting investment or engaging in any other similar activities within or outside Japan. This news release is not an offer of securities for sale in the United States. The securities referred to above have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “Securities Act”). The securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. No securities issued by Nippon Steel Corporation will be publicly offered or sold in the United States in connection with Nippon Steel Corporation’s issuance of 7th and 8th Unsecured Bonds.

2. Formulation of a green bond framework and obtaining external evaluations
Nippon Steel has formulated the Nippon Steel Corporation Green Bond Framework¹in accordance with the International Capital Market Association (ICMA)’s “Green Bond Principles 2021” and the Ministry of the Environment's “Green Bond Guidelines 2022”.
The Framework has obtained a second-party opinion² from Rating and Investment Information, Inc., a third-party evaluation organization, stating that it complies with various standards for green bond issuance.

1: Nippon Steel Corporation Green Bond Framework（ 1.3MB ）

2: Second-Party Opinion（ 1MB ）

3. Sustainable Finance website
Nippon Steel has launched a new website with information on the Green Bond. Future sustainable finance activities will also be published on the website.
Nippon Steel positions its efforts concerning climate change as a top priority management issue, and has laid out its strategic initiatives in the Nippon Steel Carbon Neutral Vision 2050. Sustainable finance will be utilized as one of the finance method to steadily advance the company’s efforts toward carbon neutrality.

Sustainable Finance HP 【https://www.nipponsteel.com/en/ir/stock/sustainablefinance.html】
Green Bond HP【https://www.nipponsteel.com/en/ir/stock/sustainablefinance/gb.html】

Reference links
Notice Regarding Issuance of Green Bond
【https://www.nipponsteel.com/en/news/20230209_200.html】

Nippon Steel Carbon Neutral Vision 2050
【https://www.nipponsteel.com/en/csr/env/warming/zerocarbon.html】

For inquiries
Public Relations Center 　Tel.: +81-3-6867-2135, 2146, 2977, 3419

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