Execution of Chugin Sustainability-Linked Loan (Hiroshima Kasei Co., Ltd.)

Chugoku Bank (Head Office: Okayama City; President: Sadanori Kato) is pleased to announce that it executed a "Chugin Sustainability-Linked Loan (*)" with Hiroshima Kasei Co., Ltd. on Tuesday, March 31.

This time, Hiroshima Kasei Co., Ltd. has set specific corporate target figures for "net CO2 emissions" with the aim of contributing to CO2 emission reduction and realizing a sustainable environment and society. The bank will encourage the achievement of these targets by offering an interest rate reduction upon their attainment, thereby supporting the client's sustainable management.

Through the provision of a wide range of financial services and the exercise of its consulting functions, the bank will continue to work towards the realization of a sustainable regional society.

* "Chugin Sustainability-Linked Loan"

This product is a mechanism where customers set corporate targets related to SDGs and ESG, and the interest rate fluctuates according to the achievement status of those targets.

The product mechanism itself has obtained a third-party opinion confirming its compliance with guidelines formulated by the Ministry of the Environment, enabling the introduction of sustainable finance with a low burden.

【Overview of the Recipient Company and Sustainability-Linked Loan】

・ Company Name: Hiroshima Kasei Co., Ltd.

・ Location: 2-2-11 Matsuhama-cho, Fukuyama City, Hiroshima Prefecture

・ Representative: Mikiharu Miyaji

・ Industry: Rubber and Plastic Products Manufacturing

・ Sales: 13,830 million yen (Fiscal year ending December 2025)

・ Loan Amount: 1,000 million yen

・ Execution Date: Tuesday, March 31, 2026

・ Loan Period: 5 years

・ Comment: Our company positions the reduction of environmental burden as an important management issue and is implementing a wide range of initiatives, including conversion to environmentally friendly energy, reduction of industrial waste, and manufacturing/product development incorporating the perspective of LCA (Life Cycle Assessment).

Through these activities, we will contribute to the realization of a sustainable society and lead to the improvement of long-term corporate value.

SPTs (*)

(*) Sustainability Performance Targets. Corporate goals that bring positive impact to the environment.

In addition to efforts to achieve the above SPTs, the company is also engaged in social contribution activities and activities aimed at realizing a sustainable society, such as donating 300 pairs of shoes (company products) to Fukuyama City for volunteers during the "20th World Rose Convention Fukuyama 2025."

The Chugoku Bank, Ltd.

Phone: 086-223-3111 Public Relations Center: Okajima (Ext. 2255)