Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) entered into an agreement for the second subordinated syndicated loan ("Syndicated Loan") with its main life insurance companies to procure ¥205 billion.

1. Objectives of the Syndicated Loan

Along with the ¥350 billion subordinated syndicated loan executed on 15th June, 2016, Syndicated Loan supports Mitsui's key initiatives of growth strategy in accelerating the enhancement of earnings base 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", by adapting a measure of fund procurement that enables Mitsui to balance financial stability and enhancement of capital efficiency, and reinforcing the flexibility of financial strategy.

2. Overview of the Syndicated Loan

The Syndicated Loan, with a total amount of ¥205 billion yen, maturity of 60 years from 15th August 2016, and prepayment enabled from 2028, 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, 50% of the Syndicated Loan amount is eligible for equity treatment by rating agencies.

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