Subordinated Syndicated Loan for Tsubaki Nakashima Co., Ltd.:
Utilizing Special Investment Operations to Support Growth amid COVID-19 via Strategic Investments Mainly in Ceramic Balls and Medical Devices

Development Bank of Japan Inc. ("DBJ"), working with Tsubaki Nakashima Co., Ltd. (Headquarters: Nara, Japan; Director and Representative Executive Officer, President, CEO: Koji Hirota; hereinafter the "Company"), Resona Bank, Limited, The Chugoku Bank, Ltd., The Nanto Bank, Ltd., The Dai-ichi Life Insurance Company, Limited, Fukoku Mutual Life Insurance Company, Kansai Mirai Bank, Limited, The Minato Bank, Ltd. and The Hachijuni Bank, Ltd., has decided to put together a subordinated syndicated loan*1 ("Financing").

The Company, which is headquartered in Nara, globally deploys the manufacturing and sales of precision balls and other parts that are used in bearings and other applications. In accordance with the Medium-Term Management Plan announced on May 14, 2021, the Company aims to implement a higher level of manufacturing by effectively utilizing management resources, including advanced manufacturing knowhow at its nineteen plants located in eleven countries around the world.

Through this Financing, the Company plans to optimize its production bases globally by accelerating its development in the new fields of ceramic precision balls, which are used in electric vehicles and wind power generators, and plastic products for medical devices, as well as tackle growth markets, including Thailand, Indonesia and India. As a manufacturing company, the Company considers "safety, quality and the environment" as its top priorities and, in step with society and local communities, aims to promote business activities while keeping in harmony with nature. In addition to facilitating the supply of parts that are essential to electric vehicles and wind power generators for the realization of a decarbonized society further out, the Company also plans to accelerate global production, mainly of high-quality products for use in the medical field to address healthcare needs given COVID-19 and an aging society.

DBJ believes that management reforms underpinned by strategic investments will contribute to a speedy and steady recovery and growth after COVID-19 and ultimately result in regional revitalization. It is the belief of DBJ that this will lead to an energetic improvement in the economic system overall in the post-COVID-19 era. Given the significance, the Financing to be provided through this subordinated syndicated loan will utilize the Growth Fund for Coronavirus Revival ,*2 which is one type of Special Investment Operations.*3 DBJ has decided to provide support in collaboration with private-sector financial institutions, mainly Resona Bank.

DBJ plans to use its Growth Fund for Coronavirus Revival to support speedy and steady recovery and growth for companies that have been impacted by the spread of COVID-19.

*1: Subordinated loan: A financing method with characteristics between capital and debt. It is a form of mezzanine finance. The benefit is to improve its financial ratios and enhance its financial stability without share dilution. This includes expectations of a certain degree of equity credit assigned by a ratings agency.

*2: A credit facility to support the speedy and steady recovery and growth of a client's corporate activities, including new business development and interindustrial collaborations, despite being impacted by COVID-19.

*3: Operations to encourage private-sector institutions to supply growth capital. The supply of growth capital is implemented intensively but temporarily by DBJ from the perspective of strengthening Japanese companies' competitiveness and revitalizing local economies.

Equity Finance Team, Kansai Branch 
Telephone: +81-6-4706-6455

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