Hitachi Construction Machinery : has determined the terms and conditions for the issuance of its Green Bonds

Hitachi Construction Machinery has determined the terms and conditions for the issuance of its Green Bonds

Management

ESG

Tokyo, March 1, 2024 - Hitachi Construction Machinery Co., Ltd. (TSE: 6305, President and Executive Officer: Masafumi Senzaki, "Hitachi Construction Machinery") has determined the terms and conditions for the issuance of its first Green Bonds (the "Bonds").

Overview of the Bonds

Name	Hitachi Construction Machinery Co., Ltd. 21st unsecured bonds (with an inter-bond pari passu clause) (Green bond)
Issue amount	JPY 10 billion
Maturity	5 years
Coupon	0.667%
Pricing Date	March 1, 2024
Settlement Date	March 7, 2024
Maturity Date	March 7, 2029
Credit Rating	A (Rating and Investment Information, Inc. (R&I))
Fiscal Agent	MUFG Bank, Ltd.
Lead Managers	Daiwa Securities Co. Ltd. (book runner) Nomura Securities Co.,Ltd. SMBC Nikko Securities Inc.
Use of Proceeds	The proceeds will be allocated for financing (capital investments and R&D) and refinancing existing investments (repayment of borrowings) in the eligible projects listed below, in accordance with the Green Finance Framework established by Hitachi Construction Machinery: ① R&D related to development of battery-powered/wired electric construction machinery, hydrogen engine/fuel cell drive construction machinery, and associated products/services ② Installation of energy-efficient equipment and facilities that contribute to the improvement of energy efficiency ③ Capital investments related to solar power that contribute to expand renewable energy capacity ④ Construction of the "Integrated Building"of Banshu Works, which has obtained a S-rank certification in CASBEE
Structuring Agent*1	Daiwa Securities Co. Ltd.
External Review	In the formulation of "Hitachi Construction Machinery Green Finance Framework", Hitachi Construction Machinery obtained the external review (second opinion) from Rating and Investment Information, Inc.(R&I) on the alignment with the international standards such as the Green Bond Principles (2021) by the International Capital Market Association (ICMA).

*1: A party that supports financing using green bonds through formulating a green finance framework and obtaining external reviews such as second opinions.

List of investors announcing investment in the Bonds (As of March 1, 2024, in alphabetical order)

• Aichibitou Japan Agricultural Cooperatives
• The Akita Bank,Ltd.
• Aoi Mori Shinkin Bank
• The Bank of Iwate, Ltd.
• The Chikuho Bank, Ltd.
• DaitokyoShinkumi Credit Cooperative
• Hanno Shinkin Bank
• THE HIGASHI‐NIPPON BANK,LIMITED
• Iwaki Shinkumi,Ltd.
• JA HIMAWARI
• JA NISHIMIKAWA
• The Joyo Bank,Ltd.
• THE KANAGAWA BANK, LTD.
• The Kita Osaka Shinkin Bank
• Kyoei Shinkumi Bank
• MAX CO.,LTD.
• Meiji Yasuda Life Insurance Company
• Momiji Bank,Ltd.
• The Musashino Bank,Ltd.
• NAGANO SHINKIN BANK
• Nakanogou Credit Cooperative
• Nissay Asset Management Corporation
• North Pacific Bank,Ltd.
• OSAKA Police Credit Union.
• Saitama Medical University
• Shiga Kenmin Shinkumi Bank
• Shigaken Shinyou Nogyo Kyodo Kumiai Rengokai
• The Shizuoka Bank, Ltd.
• Shizuoka Prefectural Credit Federation of Agricultural Cooperatives
• SUMITOMO LIFE INSURANCE COMPANY
• Sumitomo Mitsui Trust Asset Management Co., Ltd.
• Suwa Shinkin Bank
• Tajima Shinkin Bank
• The Toho Bank, Ltd.
• Tokio Marine Asset Management Co., Ltd.
• The Tokyotoshokuin Credit Cooperative
• TONO SHINKIN BANK

Related Information

• February 2, 2024　News Release　Hitachi Construction Machinery Issues Green Bond for the First Time
• Sustainable Finance

About Hitachi Construction Machinery Co., Ltd.

Hitachi Construction Machinery Co., Ltd. (TSE: 6305), headquartered in Tokyo, Japan, is a construction machinery manufacturer which globally deploys development, manufacturing, sales, and service businesses for its hydraulic excavators, wheel loaders, compaction equipment, and mining machinery, etc. In addition to its new machinery business, Hitachi Construction Machinery is expanding its "value chain businesses" of parts and services, remanufacturing (parts and machines), rentals, and used equipment as it aims to grow together with customers as a true solutions provider that offers innovative solutions to customers. With roughly 25,000 employees around the world, the consolidated sales revenue for Hitachi Construction Machinery was ¥1,279.5 billion for fiscal year 2022 (ended March 2023) with an overseas sales revenue ratio of 82%. For more details, please see the company's website.

Information contained in this news release is current as of the date of the press announcement, but may be subject to change without prior notice.