Fuji Oil Holdings Inc. decided to make an early redemption of the Series 1 Unsecured Subordinated Bonds with Optional Interest Payment Deferral and Early Redemption Provisions issued on June 13, 2019 (the ?Existing Hybrid Bonds?) and to issue new subordinated hybrid bonds in a public offering (the ?Bonds?) as replacement securities of the Existing Hybrid Bonds. Today, the Company filed a shelf registration statement and an amendment to the shelf registration statement concerning the offering of planned amount of JPY 35 billion hybrid bonds to the Director-General of the Kanto Local Finance Bureau. Purpose and background of the offering: On June 13, 2019, the Company raised JPY 35 billion through issuance of the Existing Hybrid Bonds to repay a part of debt to purchase shares in Blommer Chocolate Company in consideration of maintaining financial soundness.

The Company will make an early redemption the entire amount of the Existing Hybrid Bonds, of which initial optional redemption date is scheduled on June 13, 2024, and plans to finance through the issuance of the Bonds and subordinated loan (the ?Loan?) as replacement securities of the Existing Hybrid Bonds. Of the two financing methods planned, the Company has decided the issuance of the Bonds. The Company plans to finance up to JPY 35 billion through the issuance of the Bonds and the Loan, and the details will be decided considering demand, interest rate trend and other conditions.

Characteristics of the Bonds: Financing with hybrid bonds is a type of hybrid financing midway between equity and debt. Although the hybrid bonds are classified as debt and therefore do not dilute the equity value per share, they have characteristics similar to equity, including optional deferral of interest payment, very long maturities, and subordination in liquidation or bankruptcy proceedings. Therefore, the Company expects to get a capital qualification for 50% of the funding from Rating and Investment Information Inc. for its rating service.