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Development of Mega-Solar Projects for Investment Funds

Jul. 18, 2013


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Mitsui & Co., Ltd. ("Mitsui", head office: Chiyoda-ku, Tokyo, President and CEO: Masami Iijima) has reached understanding with Tokio Marine Asset Management Co., Ltd. ("TMA," Head office: Chiyoda-ku, Tokyo, President and CEO: Akiyoshi Oba) concerning the joint planning of a second investment fund to undertake wide-ranging diversified investment in mega-solar power projects in Japan (total generating capacity: 43MW, total fund amount: ¥13.5 billion).

The fund is the second investment fund, following the TM Nippon Solar Energy Fund 2012 Limited Partnership ("1st Fund") which was launched in August 2012. Mitsui will organize and develop mega-solar power projects, while TMA will create the new fund and offer it to institutional investors privately. The objective of the fund is to seek a certain level of long-term profits from power sales under the feed-in tariff scheme for renewable energy in Japan, which was executed in July 2012, thereby providing domestic institutional investors with attractive investment opportunities.

The fund will be set up by the end of August 2013. Development and construction of solar power plants will be completed between March and December 2014 in sequence. On completion of each plant, ownership of the plants will be transferred to the fund. At the same time, Mitsui's affiliates will be entrusted by the fund to operate the plants. Mitsui & Co. Facilities Ltd. has already established operating and maintenance system for solar power plants owned by the 1st Fund throughout Japan, and Mitsui Knowledge Industry Co., Ltd. has developed a cloud-based remote monitoring service for renewable energy generating facilities. The same structure will be applied for the new fund. As a Sogo Shosha, trading company, Mitsui has its affiliates who have carried out a wide range of business activities such as supply of steel structures and other parts/materials, the arrangement of logistics, the rental of construction machinery, and the arrangement of insurance coverage which are necessary for development of solar projects.

The 10 new project sites in Japan shown in the map below will be leased from private companies for a period of 20 years.

Mitsui will continue to develop renewable energy projects in Japan, as part of its efforts to promote and expand the use of renewable energy.

[MAP]

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Notice:
1.The fund will be a private placement investment fund and will not be offered publicly. There is no guarantee that the fund will provide stable return. This announcement does not constitute a solicitation for investment in the fund.
2.This announcement contains forward-looking statements. Such forward-looking statements are based on assumptions, forecasts and opinions derived from information available at the time of writing and are subject to known and unknown risks, uncertainties and other factors. Because of such risks, uncertainties and other factors, the actual financial results and financial position of Mitsui & Co., Ltd. may differ materially from these forward-looking statements. Such risks, uncertainties and other factors also include statements in the latest financial statements and quarterly reports issued by Mitsui & Co., Ltd., and Mitsui & Co., Ltd. accepts no obligation whatsoever to publish updated or revised versions of any forward-looking statements. This announcement was prepared for the purpose of publicly disseminating the information stated above and was not intended for the purpose of investment solicitation or any similar action whatsoever in Japan or overseas.

Information

For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Corporate Communications Division
Yuki Sugiyama
Telephone: +81-3-3285-7596
Facsimile: +81-3-3285-9819