First for a Local Public Corporation! Osaka Prefectural Housing Corporation Issues Retail Bond 'Public Corporation Rental SMALIO Bond'

Osaka Prefectural Housing Corporation (Headquarters: Chuo-ku, Osaka City, President: Ryuichi Yoshimoto, hereinafter 'the Corporation'), which provides the public rental housing SMALIO in Osaka Prefecture, will issue the 'Public Corporation Rental SMALIO Bond', the first corporate bond for individual investors issued by a local public corporation nationwide. The bonds to be issued this time are scheduled to have a 3-year term and a total issue amount of 500 million yen.

Utilization of housing complex stock as affordable housing (Takatsuki City, Shimatabe Danchi) / Housing complex community revitalization project (Neyagawa City, Korimitsui Danchi)

Background and Purpose
Due to social backgrounds such as recent price soaring, the environment surrounding housing security in urban areas is becoming increasingly severe. According to published data (*) from the National Institute for Land and Infrastructure Management, 55% of child-rearing households feel a burden regarding housing costs, making the reduction of housing burdens an important issue. As an organization that jointly promotes Osaka Prefecture's housing policies, the Corporation plays an important safety net role through the stable supply of affordable housing (rental housing where people can live with peace of mind at a reasonable rent) and the promotion of fair housing (housing that does not refuse move-ins). Furthermore, as a public institution, we have been working on contributing to local town development utilizing housing complex stock and solving social issues such as the declining birthrate, aging population, and diversifying housing needs.

With the aim of gaining broad understanding of these initiatives, we have decided to issue a corporate bond for individual investors, which will be the first for a local public corporation. By issuing corporate bonds, the Corporation will establish a direct connection with individual investors, and together with everyone, aim to form a good living environment in Osaka Prefecture while continuing to contribute to the maintenance and development of sustainable urban functions.

Positioning and Use of Funds for the 'Public Corporation Rental SMALIO Bond'
The nickname of this bond, 'SMALIO', is the brand name of the rental housing managed and operated by the Corporation, and is an abbreviation/coined word for the brand message 'SMART LIFE OSAKA: Living comfortably, true to yourself'.

This bond is planned to be issued as a social bond. A social bond is a bond issued to fund projects that contribute to solving social issues, conforming to the Social Bond Principles established by ICMA (International Capital Market Association). The funds raised will be allocated to projects such as the stable supply of affordable housing utilizing the approx. 21,000 public rental housing units (housing complex stock) owned by the Corporation in Osaka Prefecture, residential support for those requiring special consideration in securing housing such as child-rearing households and the elderly, and regional revitalization through the regeneration of housing complexes and new towns.

(*) Reference: National Institute for Land and Infrastructure Management, 'Research on Housing and Household Finances of Child-rearing Households', April 8, 2026
https://www.kenken.go.jp/japanese/information/information/press/2025/

Overview of the Retail Bond 'Public Corporation Rental SMALIO Bond'
Bond Name: 25th Osaka Prefectural Housing Corporation Bond (Nickname: Public Corporation Rental SMALIO Bond)
Term: 3 years
Total Issue Amount: 500 million yen
Unit of Purchase: 100,000 yen
Interest Rate: TBD (Annual rate, in 0.001% increments) / 100 yen
Condition Determination Date: Earliest June 2026
Issue Date: Mid-June 2026
Interest Payment Dates: June and December every year
Redemption Date: June 2029
Rating: Scheduled to acquire AA- (R&I)
Remarks: Social Bond
Contact info for each company:
Daiwa Securities Co. Ltd. 0120-010101
Mizuho Securities Co., Ltd. 06-6245-1122
Nomura Securities Co., Ltd. 06-6201-1060
Rakuten Securities, Inc. https://www.rakuten-sec.co.jp/web/bond/

*For details on this corporate bond, please contact the underwriting securities companies above.
*Rakuten Securities, Inc. is a commissioned securities company of Mizuho Securities Co., Ltd.

Click here for the 'Public Corporation Rental SMALIO Bond' Web page (Scheduled to be updated as needed)
https://www.osaka-kousha.or.jp/x-ir/kojin_shasai.html

Overview of Osaka Prefectural Housing Corporation
Representative: President Ryuichi Yoshimoto
Location