Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) has announced that it plans to procure 350 billion yen through subordinated syndicated loan ("Syndicated Loan") from its main financial institutions.

1. Objectives of the Syndicated Loan

To support the key initiatives of growth strategy in accelerating the enhancement of earnings base, as announced today in the "Medium-term Management Plan, Challenge & Innovation for 2020, the Results for the Year Ended Mar/16 and a Business Plan for the Year Ending Mar/17", Mitsui will adapt a new measure of fund procurement that enables it to balance financial stability and enhancement of capital efficiency, and reinforce the flexibility of financial strategy.

2. Overview of the Syndicated Loan

The Syndicated Loan, with a total amount of 350 billion yen, maturity of 60 years, and prepayment enabled from 2023, is a hybrid finance positioned between debt and equity. While classified as a financial liability in accounting, it has similar characteristics to capital, such as option to defer interest payment, ultra-long-term maturities, and subordination in the process of liquidation and bankruptcy. Under these terms and conditions, Mitsui expects that 50% of the loan amount will be eligible for equity treatment by rating agencies.

3. Schedule

Mitsui plans to execute the Syndicated Loan by the end of June 2016 with Sumitomo Mitsui Banking Corporation as the arranger. Mitsui will continue to consider the future use of hybrid finance.

Notice:
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.