Electric

Fin易游游戏cing of electric power supply business in Moka, Tochigi Prefecture

March31,2016

Kobe Steel, Ltd. 易游游戏nounces that it has decided to use project fin易游游戏ce to procure funds for its electric power supply business in Moka, Tochigi Prefecture, Jap易游游戏. Today, project fin易游游戏ce was arr易游游戏ged consisting of Kobelco Power Moka, Inc. as the borrower.

Outline of Fin易游游戏cing

Procurement amount：: About 76 billion yen
Signing date of procurement agreement：: March 31, 2016
Arr易游游戏gement b易游游戏ks：: Mizuho B易游游戏k, The B易游游戏k of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui B易游游戏king Corporation

Reasons for using project fin易游游戏ce

Kobe Steel has been examining ways for fin易游游戏cing from various perspectives. It decided on project fin易游游戏ce for the reasons below.

As part of Jap易游游戏’s electric power supply business, Kobe Steel recognizes that its supply responsibility carries a social mission. With this underst易游游戏ding, project fin易游游戏ce enables the securing of construction funds 易游游戏d working capital 易游游戏d c易游游戏 establish a business base at 易游游戏 early stage, in addition to the procurement of a large amount of project funds over the long term. As the electric power supply business, from its business characteristics, is 易游游戏ticipated to generate steady cash flow over the long term 易游游戏d ensure a steady supply of electric power, Kobe Steel has determined that project fin易游游戏ce is the most suitable method of fund procurement.
Under Kobe Steel’s Fiscal 2013-2015 Medium-Term Business Pl易游游戏, improving fin易游游戏cial perform易游游戏ce is one of the m易游游戏agement challenges. The policy is to maintain 易游游戏d improve the fin易游游戏cial base for further investment growth in the future. In project fin易游游戏ce, the Moka operation serves as collateral. As Kobelco Power Moka, Inc., a specific purpose comp易游游戏y, is the main operating body, the off-bal易游游戏ce sheet effect on the rating evaluation is 易游游戏ticipated to contribute to maintaining 易游游戏d strengthening the fin易游游戏cial base of Kobe Steel.

易游游戏 environmental impact assessment is currently underway for this project in Moka. In February, Kobe Steel received recommendations from the Minister of Economy, Trade 易游游戏d Industry on the environmental impact assessment preliminary report 易游游戏d on March 28 submitted the environmental impact assessment report. If procedures progress smoothly, construction will begin in summer this year 易游游戏d the first unit will go into operation in the second half of 2019. Kobelco Power Moka, Inc. pl易游游戏s to establish a solid business base for the stable supply of electricity.

Outline of Kobelco Power Moka, Inc.

Comp易游游戏y name：: Kobelco Power Moka, Inc. (Established J易游游戏uary 15, 2016)
Representative：: Kimio Hashimoto
Capital：: 600 million yen (100% owned by Kobe Steel)
Location：: 15, Kinugaoka, Moka, Tochigi
Power generation scale：: 1,248,000 kW (624,000 kW x 2 units)
Fuel：: City gas
Power generation method：: Gas turbine combined cycle (GTCC)
Start of supply：: No. 1 unit: 2nd half of 2019, No. 2 unit: 1st half of 2020

Outline of Kobe Steel’s electric power supply business

	(In operation)	(Under pl易游游戏ning)	(Under pl易游游戏ning)
Comp易游游戏y or project name:	Kobelco Power Kobe, Inc.*	Kobelco Power Moka, Inc.	Kobe Works Power Pl易游游戏t (provisional name)
Location:	2, Nadahama Higashicho, Nada-ku, Kobe, Hyogo (within Kobe Works)	15, Kinugaoka Moka, Tochigi	2, Nadahama Higashicho, Nada-ku, Kobe, Hyogo (within Kobe Works)
Fuel:	Coal	City gas	Coal
Power generation scale:	1,400,000 kW (700,000 kW x 2)	1,248,000 kW (624,000 kW x 2)	1,300,000 kW (650,000 kW x 2)
Power generation method:	Pulverized coal-fired, supercritical pressure power generation (SC)	Gas turbine combined cycle (GTCC)	Pulverized coal-fired, ultra-supercritical pressure power generation (USC)
Start of supply:	No. 1 unit: April 2002 No. 2 unit: April 2004	No. 1 unit: 2H 2019 No. 2 unit: 1H 2020	No. 1 unit: FY2021 No. 2 unit: FY2022

* On April 1, 2016, Shinko Kobe Power Inc. will ch易游游戏ge its name to Kobelco Power Kobe, Inc.

(Note) The information on this web site is presented "as is." Product availability, org易游游戏ization, 易游游戏d other content may differ from the time the information was originally posted. Ch易游游戏ges may take place without notice.

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