Fukuoka Prefecture One Health Bond: Purchase and Investment Intent Declaration Available at Daiwa Securities Branches (For Corporate Clients)

Daiwa Securities Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; President and CEO: Akihiko Ogino; hereinafter "Daiwa Securities") is pleased to announce that the "Fukuoka Prefecture One Health Bond" (hereinafter the "Bond"), a sustainability bond scheduled to be issued by Fukuoka Prefecture (Governor: Seitaro Hattori) in August 2026, will be available for purchase at Daiwa Securities branches and sales offices nationwide, including five locations within Fukuoka Prefecture.

The Bond can be purchased by investors nationwide (corporate entities only) starting from 10 million yen. Investors who purchase the Bond can make an investment intent declaration*1. The names of investors (corporate names) who make an investment intent declaration are scheduled to be introduced on the Fukuoka Prefecture website at a later date.

*1 Investment Intent Declaration: Publicly announcing the purchase of this Bond in agreement with the significance of the project that this Bond aims to support.

The funds raised through this Bond, which is Fukuoka Prefecture's second sustainability bond issuance, are planned to be allocated to projects that contribute to the promotion of One Health*2, among the eligible green projects and eligible social projects established in the framework. Fukuoka Prefecture is the only prefecture issuing a bond with its funding purposes limited to the promotion of One Health.

*2 One Health: A philosophy that views the health of humans and animals and the soundness of the environment as interconnected and aims to protect them integrally. Fukuoka Prefecture, as the location where the "Fukuoka Declaration" was made at the "2nd World Veterinary Association-World Medical Association International Conference on 'One Health'" held in 2016, is engaged in promoting One Health through measures such as enacting a basic ordinance on the promotion of One Health and formulating a promotion action plan.

For detailed information regarding this Bond and for purchase inquiries, please feel free to contact your nearest Daiwa Securities branch.

[Bond Overview]*This is based on the schedule at the time of distribution. It is subject to change.

Term

5 years / 10 years (Lump-sum repayment at maturity)

Issue Amount

Total of 10 billion yen

Amount per Bond

10 million yen

Issuance Conditions

Undetermined

Issuance Period

August 2026 (Reiwa 8)

Suitability Assessment

Received assessments from the third-party institution, Rating and Investment Information, Inc. (R&I), regarding compliance with:

The International Capital Market Association (ICMA)'s

"Green Bond Principles 2021" and "Social Bond Principles 2023"

"Sustainability Bond Guidelines 2021"

The Ministry of the Environment's "Green Bond Guidelines 2024 Edition"

And the Financial Services Agency's "Social Bond Guidelines (October 2021)"

Purchasers

Corporate investors

[Planned Allocation of Bond Proceeds]

Category

Project

Classification

Green and

Social

Development of One Health Centers (Institute of Public Health and Environmental Science, Animal Health and Hygiene Institute), etc. (ZEB conversion)

Green Buildings

Energy Saving

Facility development for zoonotic infectious disease countermeasures

Green

Development of One Health experiential learning and research zones

Development of artificial reefs in Buzen Sea

Biodiversity Conservation

Green

Forest road development

Environmentally sustainable management of natural resources and land use

Social

Development of public health centers

Development of government buildings, etc.

Social

Development of prefectural high schools practicing One Health education

Development of educational facilities and equipment

[Examples of Planned Projects]

Image of the exterior of the One Health Center Zoonotic infectious disease countermeasures (bacterial testing in laboratories)

Development of artificial reefs Forest road development

Fees and Risks Associated with Transactions

Fees and Risks: - For transactions of stocks, etc., through the "Daiwa Consulting" course at branches (via branch representatives), a brokerage commission (including tax) of up to 1.26500% of the transaction value (minimum 2,750 yen) will be charged. For foreign stock transactions, in addition to a domestic intermediary commission (including tax) of up to 0.99000% of the transaction value, local fees and taxes determined based on local conditions will be incurred. - When trading stocks, etc., there is a risk of loss due to fluctuations in prices, etc. (including fluctuations in the value of underlying assets and profitability). For foreign stock transactions, in addition to price fluctuations, there is a risk of loss due to foreign exchange rate fluctuations. - For margin transactions, a margin deposit of at least 30% of the trading value and a minimum of 300,000 yen is required in advance. Margin transactions allow for large trades with a small margin deposit, thus there is a risk that the amount of loss may exceed the amount of the deposited margin. - When trading bonds through public offerings, private placements, or over-the-counter transactions with our company, you will only pay or receive the purchase price or sale price. For yen-denominated bonds, prices may fluctuate due to changes in interest rate levels, leading to potential losses. For foreign currency-denominated bonds, in addition to interest rate fluctuations, there is a risk of loss due to foreign exchange rate fluctuations. Furthermore, there is a risk of loss due to changes in the financial condition of the bond issuer or the guarantor of principal and interest payments, and changes in external evaluations related thereto. - When trading investment trusts, you will bear various expenses such as sales charges and management fees (trust fees) set for each fund. Additionally, there is a risk of loss due to price fluctuations for each product.

Points to Note Before Investing: - Fees and risks vary by trading course and product. Please read the "Prospectus for Listed Securities, etc.," "Pre-contract Disclosure Documents," "Prospectus," etc., carefully. - Some foreign stocks and foreign bonds may not have disclosure of corporate information under Japan's Financial Instruments and Exchange Act.

Company Name: Daiwa Securities Co., Ltd. Financial Instruments Business Operator Kanto Local Finance Bureau (Kinsho) No. 108 Member Associations: Japan Securities Dealers Association, The Investment Trusts Association, Japan, The Financial Futures Association of Japan, The General Securities Association, Japan Security Token Association