Kaneka Issues Social Bond

KANEKA CORPORATION
November 16, 2023

Kaneka Corporation (Headquarters: Minato-ku, Tokyo; President: Minoru Tanaka) will issue its 9th unsecured straight bond, "Social Bond," to raise funds for capital investment in a new medical device plant in Hokkaido. The offering amount is 10 billion yen scheduled to be issued in December 2023, and the issuance term is 5 years.

We provide value globally as a solution provider for the three social crises of environment and energy, food, and health. In the medical business, we provide various innovations through medical devices including endovascular catheters and blood purification devices to solve social issues related to health.

This social bond will be used for capital investment in a new medical device plant under construction in the Tomakomai Tohbu Industrial Area in Hokkaido. The medical devices planned for production at the new plant are Liposorber™, which selectively removes LDL cholesterol from the blood, and Rheocarna™, which is highly regarded in the market as a new treatment method for severe arteriosclerosis obliterans (ASO)*¹. Demand is expected to grow rapidly in the U.S., China, and other countries with large numbers of potential patients, and the funds raised through the social bond will be used to develop a manufacturing base for the medical business.

Based on our mission of "KANEKA thinks Wellness First," we are developing our business with the aim of developing sustainable society and realizing affluent society. We will continue to actively provide valuable solutions to solve social issues on a global scale.

<Outline of the Social Bond>
・Name: Kaneka Corporation 9th unsecured straight bond
・Issuer: Kaneka Corporation
・Issuance amount: 10 billion yen (scheduled)
・Issuance term: 5 years (scheduled)
・Issuance date: December 2023 (scheduled)
・Lead managers: Nomura Securities Co., Ltd., SMBC Nikko Securities, Daiwa Securities,Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
・Usage of funds: Capital investment at the Hokkaido Medical Device Plant (e.g. newmanufacturing facilities for adsorption-type blood purification devices)
・Eligibility as a social bond:

In issuing the social bond, we developed our Social Finance Framework in accordance with the Social Bond Principles (SBP) 2023 of the International Capital Markets Association (ICMA), the Loan Market Association (LMA), the Asia-Pacific Loan Market Association (APLMA), and the Loan Syndication and Trading Association (LSTA), as well as the Social Bond Guidelines (2021 edition) of the Financial Services Agency of Japan. As a third-party evaluation, we have obtained a second opinion from Rating and Investment Information, Inc. to the effect that the framework conforms to these principles.

*1. A disease in which arteriosclerosis causes narrowing or occlusion of the arteries in the lower limbs, resulting in impaired blood circulation (ischemia). In the early stages, it causes coldness, numbness, and gait disturbance. When the disease progresses to severe leg ischemia with pain and ulceration, the risk of leg amputation and death increases.