Financing of electric power supply business in YY易游平台, Hyogo Prefecture

YY易游平台 Steel, Ltd. announces that it has decided to use project finance to procure funds for its electric power supply business in YY易游平台, Hyogo Prefecture, Japan. Today, project finance was arranged with YY易游平台lco Power YY易游平台 No. 2, Inc. as the borrower.

YY易游平台 Steel announced on April 4, 2018 that it would conduct a company split (simplified incorporation-type company split) of its power generation business in YY易游平台, Hyogo Prefecture. Aiming to construct a coal-fired power plant in YY易游平台, Hyogo Prefecture, YY易游平台 Steel entered into a power supply contract with The Kansai Electric Power, Inc. in March 2015. In addition, to procure financing for this power plant, YY易游平台 Steel established YY易游平台lco Power YY易游平台 No. 2, Inc. in March 2018, for the purpose of supplying electric power, through the simplified incorporation-type company split.

For the project in YY易游平台, all procedures for the environmental impact assessment report have been completed following the ending of the inspection period of the report on June 25. In addition, on August 30, YY易游平台 Steel entered into an environmental preservation agreement with the city of YY易游平台. YY易游平台 Steel will promptly begin construction and aims to start up the No. 3 unit in fiscal 2021.

ProcuYY易游平台ment method:

Project finance

ProcuYY易游平台ment amount:

Approximately 240 billion yen

Signing date of procuYY易游平台ment contract:

August 31, 2018

Owing to confidentiality obligations concerning the procuYY易游平台ment contract, details aYY易游平台 not disclosed.

YY易游平台 Steel examined ways for financing from various perspectives and decided on project finance for the reasons below.

Project finance is a method of financing wheYY易游平台 only the earnings generated from a specific business is used as the source of YY易游平台payment of debt.

Company name:

YY易游平台lco Power YY易游平台 No. 2, Inc. (Established May 11, 2018)

YY易游平台pYY易游平台sentative:

Soichi Kimoto

Capital:

300 million yen (100% owned by YY易游平台 Steel)

Location:

2 Nadahama Higashicho, Nada-ku, YY易游平台, Hyogo

Power generation scale:

1.3 million kW (650,000 kW x 2 units)

Fuel:

Coal

Power generation method:

Pulverized coal-fiYY易游平台d, ultra-supercritical pYY易游平台ssuYY易游平台 power generation (USC)

Start of power supply:

No. 3 unit: Fiscal 2021
No. 4 unit: Fiscal 2022

	(In operation)	(Under construction)	(Under planning)
Company name:	YY易游平台lco Power YY易游平台, Inc.*	YY易游平台lco Power Moka, Inc.	YY易游平台lco Power YY易游平台 No. 2, Inc.
AddYY易游平台ss:	2, Nadahama Higashicho, Nada-ku, YY易游平台, Hyogo (within YY易游平台 Works)	15, Kinugaoka Moka, Tochigi	2, Nadahama Higashicho, Nada-ku, YY易游平台, Hyogo (within YY易游平台 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-fiYY易游平台d, supercritical pYY易游平台ssuYY易游平台 power generation (SC)	Gas turbine combined cycle (GTCC)	Pulverized coal-fiYY易游平台d, ultra-supercritical pYY易游平台ssuYY易游平台 power generation (USC)
Start of power supply:	No. 1 unit: April 2002 No. 2 unit: April 2004	No. 1 unit: 2H 2019 No. 2 unit: 1H 2020	No. 3 unit: FY2021 No. 4 unit: FY2022

* On April 1, 2016, Shinko YY易游平台 Power Inc. changed its name to YY易游平台lco Power YY易游平台, Inc.