#1JiCA H 0104 Japan International Cooperation Agency May 2023 Japan International Cooperation Agency#2JiCA Disclaimer This presentation does not constitute or form part of a prospectus, or other offering document, or an offer to subscribe for or purchase, or a solicitation of an offer or invitation to subscribe for or purchase, any securities. This presentation includes forward-looking information that reflects JICA's plans and expectations. Such forward-looking information is based on JICA's current assumptions and beliefs in light of the information currently available to it, and involves known and unknown risks, uncertainties, and other factors. Such risks, uncertainties and other factors may cause JICA's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by such forward-looking information.#3jica JICA at a Glance What is JICA? ■ One of the World's Largest Bilateral Development Agencies ■ Play a core role in Japan's ODA ■Support developing countries for Sustainable Development Business Activities Funding Activities JICA's Bonds - Social/ Sustainability Bond Framework Overview Objectives ■ JICA supports socioeconomic development, recovery and economic stability of developing regions. (1) Mission ■ JICA will work on human security and quality growth. (2) Profile ■ 100% owned by the Japanese Government ■ Long history as a key development partner since 1961 ■ 96 overseas offices and 15 domestic offices ■ Rated A+ (Stable) by S&P ■ Robust capital ratio of 70.99% (3) Recent Highlights Note: In this material, exchange rate is USD/JPY = 132 unless otherwise stated. References in this document to Japanese fiscal years ("JFYS") are to 12-month periods commencing in each case on April 1 of the year indicated and ending on March 31 of the following year. (1) Legal foundation: Act of the Incorporated Administrative Agency ➤ Appendix (2) - Japan International Cooperation Agency ("JICA Act") Development Cooperation Charter: development cooperation activities guidelines approved by the Cabinet in 2015. See Appendix-Japanese Development Cooperation Charter for detail. (3) Capital ratio = net assets / assets as of 2022 March end 2#4jica JICA at a Glance Business Activities Funding Activities Three Main Arms of Operation Strategically synthetize three arms to maximize development impacts Finance and Investment Grant Aid Technical Cooperation للترويج فقط كتيب صحة الأم والطفل Mother and Child Health Handbook JICA's Bonds - Social/ Sustainability Bond Framework Overview Recent Highlights (photo: Delhi Metro Project in India) ODA Loan Sovereign-based lending with concessional conditions Private-sector Investment Finance Lending or equity investment to private-sector entities (photo: Clean Water development in Zambia) (photo: Maternal and Child Health Handbook project in Palestine) Assistance in the form of grants with no repayment obligations to provide the goods and services necessary for socio-economic development *Proceeds of JICA Bonds are allocated to Finance and Investment Account. Hands-on cooperation and policy advisory services to improve institutional frameworks and human resource development to advance socio- economic development ➤ Appendix Delhi Metro Project (video) Cooperation on clean water and sanitation (video) Global Maternal Child Health Handbook projects (video) Photos by JICA 3#5jiCA JICA's Mission Aligned with SDGs ""Leave no one behind" JICA at a Glance "Human Security" ""End poverty, improve health and education, reduce inequality, and spur economic growth? " Pursuit of individual rights to be free from fear and want jiCA Business "Quality Growth" Activities Realize inclusive, sustainable, and Funding Activities resilient growth Human Security Quality Growth JICA's Bonds Peacebuilding Universal Health Coverage (UHC) Gender Equality Sustainable Energy Resilience - Social/ Sustainability Bond Framework Overview Recent Highlights Turkey ■Improving living conditions of Syrian refugees and hosted communities Kenya Implementation of the Free Maternity Services and the Health Insurance Subsidy Program GOOD HEALTH Mexico Financing support to women entrepreneurs Vietnam ■ Building renewable power generation facilities SUSTAINABLE CITIES PEACE, JUSTICE GENDER AND COMMUNITIES 16 AND STRONG AND WELL-BEING QUALITY 10 INEQUALITIES REDUCED GENDER EQUALITY DECENT WORK AND ECONOMIC GROWTH AFFORDABLE AND CLEANENERGY 13 ACTION INSTITUTIONS A M Bangladesh ■ Enhancement of resilience against climate change and coastal disaster INDUSTRY, INNOVATION AND INFRASTRUCTURE 13 ACTION ➤ Appendix Source: JICA's Report (https://www.jica.go.jp/activities/issues/special edition/security/ku57pq00002j5bmp-att/human security eng.pdf) and other publicly available information. Photos by RENOVA, Inc. (photo for sustainable energy) and JICA#6jica JICA at a Glance Impact and Achievement 139 developing countries and regions received various assistance from JICA during JFY2021 Diversified Major Impacts achieved Contribution to SDGs (1) 6 AND SANITATION CLEAN WATER Business Activities 5% 18% 3% Funding Activities JICA's Bonds - Social/ Sustainability 17% 2022FY JPY 2.45 trillion 3% 27% 16% Bond ■ 1 Framework - 2 ■ 3 Overview ■ 4 Education ■ 5 ■ 6 ■ 7 ■ 8 ■ 9 Recent Highlights ■10 Reduced Inequalities ■11 Sustainable Cities ■ 12 No Poverty Zero Hunger Health Gender Equality Water and Sanitation Energy Economic Growth Infrastructure and Industry Sustainable Production ■ 13 Climate Actions ■ 14 Oceans - 15 Forests and Biodiversity ■ 16 Peace and Governance ■ 17 Partnerships ➤ Appendix 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE Access to Safe Water 72.8 million people 7 AFFORDABLE AND CLEAN ENERGY Access to Roads 23,490 km Clean Transportation 1.71 billion people 11 SUSTAINABLE CITIES AND COMMUNITIES Access to Energy 20.8 million people Disaster Risk Reduction 388 million people 15 LIFE ON LAND Afforestation Source: JICA 2,850,000 ha (1) Expected contribution to SDGs under new finance and investment projects is identified through ex-ante evaluation conducted by JICA. For projects identified as contributive to more than one SDGs, commitment amount is divided equally across the identified SDGs by the number of Goals. (2) Impact figures indicated are aggregated impact of Finance and Investment projects whose ex-ante evaluation had been conducted during 2011FY-2020FY. 5#7jiCA JFY 2022 Finance and Investment Activities JFY 2017-2022 Commitment Amount JPY (bn) JICA at a Glance 2,450.6 2,500 2,500 1,888.4 2,000 2,000 1,523.2 1,566.6 1,274.7 1,500 1,266.1 1,789.9 Business 1,500 Activities 1,438.8 1,388.2 1,000 1,000 1,138.5 1,089.4 1,107.9 500 500 Funding 0 Activities JFY2017 JFY2018 JFY2019 JFY2020 JFY2021 JFY2022 Commitment JICA's Bonds - Social / Sustainability Bond Framework Overview Distribution by Eligible Sector (2) Agriculture, forestry and fisheries Healthcare Education Disbursement Distribution by Region (2) 3% 3% 3% 10% Access to finance for women Water Supply, Sewerage and Sanitation Energy SMES / Industrial development 6% Transportation Public transportation 7% Housing financial support for low- income class 13% ■Comprehensive basic infrastructure Recent Highlights 49% 16% ➤ Appendix development, Reconstruction post- disaster Flood control Communication, Broadcast ■Comprehensive environmental conservation Peace building Others (Tunisia "Project for Support to Strengthen the Social Protection") 5% 3% 11% 39% 34% Southeast Asia East Asia South Asia Central Asia and the Caucasus Pacific Central America and the Caribbean South America Middle East Africa Europe ■Multi regions (1) For details of countries classification, please refer to "Countries Classification of ODA Loan Recipient" in Appendix. €2 (2) The distribution by eligible sector are classified by JICA Treasury department based on JFY 2022 new commitments. These graphs do not indicate the actual allocation of proceeds to each sector/region, which may vary significantly. 6#8jica JICA at a Glance Finance and Investment Account - Funding Plan Funding needs are increasing as Finance and Investment Activities expand In JPY unless otherwise stated JFY2022 JFY2023 47.0bn 47.1bn 47.8bn 614.4bn 1,024.7bn 1,043.1bn 64.0bn 118.0bn 225.5bn 3% Business Activities 26% JFY2021 JFY2023 JPY 1,894.0 bn Capital added by government Funding Activities 4% 55% 12% Bond JICA's Bonds - Social / Sustainability Framework Overview ■Capital added by government ■Borrowing from government ■Government-guaranteed bonds ■FILP Agency Bonds Own funds, etc Borrowing from government Government-guaranteed bonds (USD dominated)(1) FILP Agency Bonds (JPY) (2) Own funds, etc. Total Recent Highlights ➤ Appendix (580mn USD) (900mn USD) (1.7bn USD) 140.0bn 80.0bn 80.0bn 634.6bn 651.2bn 497.6bn 1,500.0bn 1,921.0bn 1,894bn (As of April 2023) Note: Numbers less than a hundred million yen have been rounded off. (1) The payment of principal and interest in respect of Government-guaranteed bonds are unconditionally and irrevocably guaranteed by the Government of Japan. In bracket, actual issued amount in USD is shown for JFY2021 & 2022, USD equivalent calculated at 132 JPY is shown for JFY2023. (2) FILP Agency Bonds: bonds issued under Japanese Government's Fiscal Investment and Loan Program (FILP), without explicit government guarantee. Selected agencies including JICA, JBIC, DBJ, etc., issue bonds under this program. 7#9jiCA JICA at a Glance Track Record - Bond Issuance Government-guaranteed Bonds (USD) ■JICA is one of the three agencies qualified to receive Japanese government-guarantee for offshore issuance, along with Development Bank of Japan (DBJ) and Japan Bank for International Cooperation (JBIC). Business Activities Funding Activities Issue Issue No. Format Volume Date Price 1 Nov 2014 2 Oct 2016 3 Apr 2017 4 Jun 2018 5 Jul 2020 6 Apr 2021 7 May 2022 Reg S SEC- registered SEC- registered SEC- registered SEC- registered SEC- registered SEC- registered USD 500 mn 99.588 MS Spread +17bps 1.875% Coupon Tenor 5 Years USD 500 mn 99.580 +59bps 2.125% 10 Years USD 500 mn 99.480 +61bps 2.750% 10 Years USD 500 mn 100.000 +41bps 3.375% 10 Years USD 500 mn 99.612 +46bps 1.000% 10 Years USD 580 mn 98.982 +30bps 1.750% 10 Years USD 900 mn 99.657 +63bps* 3.250% 5 Years *SOFR MS FILP Agency Bonds (JPY) JICA's Bonds - Social / No. Issue Date Volume Sustainability Bond Framework Overview JICA issued its first Fiscal Investment and Loan Program (FILP) Agency bonds in the domestic market in December 2008. 60 Jun 2021 JPY 10 bn Issue Price 100.000 JGB Spread +3.0bps 0.457% Coupon Tenor 20 years 61 Sep 2021 JPY 10 bn 100.000 +7.5bps 0.110% 10 years 62 Sep 2021 JPY 10 bn 100.000 +2.5bps 0.439% 20 years 63 Jan 2022 JPY 10 bn 100.000 +6.5bps 0.194% 10 years Recent Highlights ➤ Appendix ■JICA is recognized as one of the major bond issuers in the Japanese market, its bonds serving as the benchmark for the government agency sector. The outstanding amount is JPY 790 billion (eq. USD 5.98 billion) as of March 2023. 64 Jan 2022 JPY 7 bn 100.000 +1.0bp 0.533% 20 years 65* Feb 2022 JPY 3 bn 100.000 +6.5bps 0.194% 10 years 66 July 2022 JPY 11 bn 100.000 +14.0bps 0.374% 10 years 67 July 2022 JPY 13 bn 100.000 +1.5bps 0.910% 20 years 68 Sep 2022 JPY 7.5 bn 100.000 +15.0bps 0.399% 10 years 69 Sep 2022 JPY 13 bn 100.000 +10.0bps 1.032% 20 years 70 Dec 2022 JPY 10 bn 100.000 +31.0bps 0.559% 10 years 71* Feb 2023 JPY 5 bn 100.000 +14.0bps 0.517% 5 years 72 Mar 2023 JPY 20.5 bn 100.000 +15.1bps 0.090% 2 years *Retail bond 8#10jica JICA at a Glance Theme Bonds (Social Bond) Focuses on JICA's key development agendas 2019 Business Activities TICAD Bonds Funding Activities JICA's Bonds - Social / Sustainability Bond Framework Overview Recent Highlights ➤ Appendix Use of Proceeds: Finance and investment projects which assists African region's sustainable development 2020 COVID-19 Response Bonds Use of Proceeds: Finance and Investment projects which strengthen healthcare systems and mitigate economic impacts of COVID-19 2021 Gender Bonds Use of Proceeds: Finance and Investment projects which enhance gender equality and women's empowerment sender equality and Women's empowerment: A key for sustainable development JICA Gender Bonds 2022 Peace-building Bonds Use of Proceeds: Finance and Investment projects which assist the targeted countries affected by violent conflicts to build resilient and peaceful societies Building Peaceful and just Societies without fear and Violence JICA aims to create peaceful societies that leave no one behind by helping to build resilient states and societies that can prevent outbreaks and recurrences of violent conflicts. SUSTAINABLE DEVELOPMENT GOALS TICAD YOKOHAMA JAPAN 2019 (Note) The theme bonds above were FILP Agency Bonds in the Japanese domestic market. The bonds were issued within the former JICA's Social Bond framework applied to FLIP Bonds which were issued before March 31, 2023. 6#11jiCA JICA at a Glance Business Activities Funding Activities JICA's Bonds - Social/ Sustainability Bond Framework Overview Recent Highlights ➤ Appendix JICA's Bonds - Highlights JICA 2 3 1 Financial Soundness Strong Ties with the Japanese Government ■ Strategically important as the sole agency implementing ODA (Official Development Assistance) for the Japanese Government Contribution to SDGs/ESG Investment ■ Support socio-economic development in developing countries ■ New JICA Social / Sustainability Bond Framework to promote finance for sustainable development ■ JPY8.2trn (USD62.5bn)* capital received from the Japanese Government, ensuring sound capital ratio of 70.99% as of March 31, 2022 ■ Continues to record positive annual net profit* since JFY2003. Retained earnings can be accumulated and retained internally up to equivalent of the share capital Receives additional capital from the Japanese Government when necessary (Article 5, paragraph 2 of the JICA Act) Finance and Investment Account (Bond Issuing Account) 10#12jiCA JICA Social / Sustainability Bond Framework Overview 1. Use of Proceeds JICA at a Glance Business Activities Funding Activities JICA's Bonds - Social / Sustainability Bond Framework Overview ■ Allocation to Finance and Investment Cooperation projects (ODA Loans and Private- Sector Investment Finance) ■ All of these projects are eligible for Social Bonds ■ Some projects also address environmental issues (Social - Environmental projects) ■ Use of Proceeds for Sustainability Bonds are composed of Social projects and Social- Environmental projects ■15 Eligible Sector (see the next slide) Exclusion Criteria ■ Coal-fired thermal power projects, weapons, drugs, alcohol, tobacco, nuclear related projects and others stipulated in the Development Cooperation Charter of Japan Government Characteristics of JICA's Finance and Investment Cooperation Projects Projects Contributing to Resolving Social Issues Projects Contributing to Resolving Both Social and Environmental Issues Allocation Period ■Within 24 months of issuance of bonds Recent Highlights ➤ Appendix JICA Social/Sustainability Bond Framework (https://www.jica.go.jp/english/ir/bonds/c8h0vm0000awltie-att/bond framework.pdf) 11#13jiCA JICA Social / Sustainability Bond Framework Overview JICA at a Glance Social Eligible Sector Objectives Environmental Objectives 1 POVERTY NUMBER Agriculture, Forestry and Fisheries SSS Healthcare 300 AND WELL-BANG We Education Business Improvement of access to finance for women Activities Water, sewerage and Sanitation Funding Activities Energy ✓ ✓ (excl. desalination) QUALITY EDUCATION Related SDGs EDIGUTY 8 RECENT WORE AND FORD 13 CLIMAT LIFE GROWTH AMKIN 14 BELOW WATER 15 ONLAND ⑪+ GEHEER QUELIT EDCENT WORE AND ECONOMIC GROWTH 10 INDSAMITATION BUSTIBLEEMIC CAMINTE (Renewable energy [solar; wind; geothermal; and hydropower excl. large-scale], energy efficiency) 7 TOIDUREND CLEM 13 CLIMAT ACTION REQUES Small and medium-sized enterprises / Industrial development BECENT WORK AND M INDUSTRY IN HOWATIO AND INHIST PICTINE INDUSTRY HOTE IN HISTRUCTURE 11CMIC AND COMMUNITIE JICA's Bonds Transportation - Social / INDUSTRY, JIN HOWOTION DISTRUCTURE BUSTIBLECID ND DORMINTIES OJMATE 13 T Sustainability Public transportation ✓ (Electrified public transportation) Bond SWOLECMIS 1 ADVERTY 11 HD COMMUNTIES Framework Housing financial support for low-income class Overview STIWALEEMIS AND COMMUNI Comprehensive basic infrastructure development, Reconstruction post-disaster ✓ BETIWALECMIC ODDAMUNTE 13 CLIMAT ACTION Recent Highlights Flood Control ✓ ✓ 9AND IN HISTRUCTURE DUSTABLECI COMUNITIE Communication, broadcast ✓ CUMAT 1 LFC 13 14 BELOMITER ➤ Appendix Comprehensive environmental conservation ✓ ✓ 16 ASTRON Peace building ✓ 12#14jiCA JICA at a Glance Business Activities JICA Social / Sustainability Bond Framework Overview 2. Project Evaluation and Selection Process Project Evaluation Criteria ■ Evaluate projects by 6 criteria: Relevance, Coherence, Effectiveness, Impact, Efficiency and Sustainability JICA follows the OECD-DAC* evaluation criteria. ■ Assess effectiveness and impact both from quantitative and qualitative perspectives. Project Selection and Management Process *Please see page 34 for details of evaluation criteria. ■ Transparent and rigorous process from appraisal/selection stage to implementation/monitoring stage ■ Reviewed by Japanese government and external experts during project selection process Funding Activities ■ Appraisal results are publicly disclosed in the form of ex-ante evaluation reports JICA's Bonds - Social / Sustainability Bond Framework Overview Recent Highlights ➤ Appendix ■ Close monitoring by JICA both on-site and off-site during project implementation ■ Ex-post evaluation by independent evaluators after project completion and publicly disclosed. Results utilized under the PDCA cycle (see below). >> Environmental and Social Consideration** ■'JICA Guidelines for Environmental and Social Consideration (ESC)' identify negative environmental and social impacts and incorporate mitigation measures from the project formulation stage and ensure compliance to 'do no harm' during project implementation >> Assess and Address Climate Risks - JICA Climate-FIT** ■ Incorporate climate measures into all projects ■ Assess and address climate risks by the 'Climate Finance Impact Tool (JICA Climate-FIT) for both mitigation and adaptation. JICA' PDCA cycle Learning Feedbacks to other projects Action Accountability Check Ex-post evaluation Project evaluation based on the PDCA cycle Plan Ex-ante evaluation Do Implementation & Monitoring **Please see next slide for details of Environmental and Social Consideration and climate risk assessment. 13#15jiCA JICA at a Glance Environmental and Social Considerations through the Entire Process Environmental and Social Considerations throughout the entire process ■JICA Guidelines for Environmental and Social Consideration (JICA Guidelines for ESC)' to examine negative environmental and social impacts as well as avoidance/mitigation measures [Entire Process for ESC] Advisory Committee Advisory Committee Advisory Committee Objection Procedures A Business Activities Start to consider Project development Screening B Preparatory Survey Environmental Review Conclusion Definition of Environmental Categories A: Likely to have significant adverse impacts B: Potential impacts that are less adverse than A FI of agreement documents C Funding Activities C: Minimal or little impact. FI: Whereby JICA provides funds to a financial intermediary and subprojects could not be identified prior to JICA's approval of the transaction Disclose the results of the categorization on JICA's website Disclose the documents of the preparatory surveys and ESC on JICA's website Disclose the results of the environmental review on JICA's website Monitoring Disclose on JICA's website the monitoring results made public by project proponents etc. JICA's Bonds - Social / Sustainability Bond Framework Overview Recent Highlights ■Governance in JICA ESC ✓ Screening and monitoring: an independent Advisory Committee consisting of external experts and NGOs ✓ Objection procedures: independent Examiners (external experts) to inspect filed cases ✓ JICA obligates the recipient countries to comply with the guidelines and disclose related information Incorporating climate change measures into ALL projects Mainstreaming climate change Mitigation / Adaptation in the planning stages of ALL projects in various Sectors Project Formulation Stage Feasibility Study Project Appraisal Stage Decision Making Process To Implement The Project Project Implementation ➤ Appendix 1st Consultation with the Office for Climate Change Utilize the JICA Climate- FIT (Finance Impact Tool for Mitigation & Adaptation) 2nd Consultation with the Office for Climate Change Finalization of climate change measures JICA Climate-FIT (Mitigation) https://www.jica.go.jp/english/our work/thematic issues/climate/mitigation.html JICA Climate-FIT (Adaptation) https://www.jica.go.jp/activities/issues/climate/ku57pq0000109h2v-att/climate fit e.pdf Monitoring and Evaluation 14#16jiCA JICA at a Glance JICA Social / Sustainability Bond Framework Overview 3. Management of the Proceeds ■ Treasury, Finance and Account Department will track and monitor the amount of net proceeds to be allocated to Eligible Projects ■Manage unallocated proceeds in cash or cash equivalents until the full amount of the proceeds are allocated 4. Reporting ■ Report allocation and impact of Bonds on an annual basis until the net proceeds are fully allocated Business Activities ■ Disclose information in a timely manner in case of material events ☑ Funding Activities JICA's Bonds - Social / Sustainability Bond Framework Overview Recent Highlights ➤ Appendix Allocation Reporting The amount of net proceeds allocated to Eligible Projects, and remaining balance if any The allocated amount for each Eligible Project Category - The ratio of new / refinanced projects - Impact Reporting Publish impact reports on social and environmental contribution (impacts) of eligible projects to the extent practically possible Ex-ante evaluation reports set quantitative and qualitative indicators to measure development effects for each project and are disclosed upon signing. In the Impact report, JICA plans to report project effects of eligible projects to which proceeds have been allocated based on the ex-ante evaluation report of respective projects Reporting Examples JICA Bonds for Sustainable Development Use of Proceeds of JICA bonds Proceeds of JICA bonds are allocated to JICA's Finance and Investment activities and utilized for the socioeconomic development of developing countries and regions. Investors Investment in ICA bonds Finance and Investment Developing countries 9 Major impacts and achievements Access to Safe Water CO Road Network JICA Proceeds of JICA Bonds are used for basic needs such as infrastructure development, health and education, climate change response, etc. Issuance Record (as of March 2022) Access to Energy Railway. Passengers Airport 72.84 million people 20.77 million people (3) 23,490km (4) 1.71 billion people/year 78.06 million people / year Port (cargo) 350 million tons/year 3.88 million people Disaster risk A prevention JICA Interest payment/redemption. repayment Total amount of FILP agency bonds Of which are Social Bonds 790 billion yen 340 billion yen 15 Afforestation 2.85 million ha Note 2 parts of France and Investment adivites that are confeed from expeteators conductes between Pr11 and Pra Note 3 Cacuated based on generation capacity of CA financed projects against the word data in 2015 to energy consumption and ston te 4 CA financed projects added as sew roads ane 117 habitated/improved existing roam 1 Allocation Ratio per SDGs ■ For JICA bonds issued in FY2021, 40 billion yen was fully allocated to JICA's Finance and Investment projects that contribute to the achievement of SDGs in developing regions as shown below. The glonyder Gande Bank is scheduled by March 2023 2023 Allocations per Sustainable Development Goals (%) 1 2 Wit 6% 1% 7% 1% 1% 6 O = 4% 12% 7% 32.5% 0.2% 12 13 am 14 လ Total allocation: 21% 0% 5% 0.4% 0.2% 40 billion yen (Allocation period From the date of issuance of each bond till March end 2022) 0.5% 1.2% (Note) Alocations made for the projects during the location partod and died according to the expected SDGs contribution of the projects bound on treat for that the located anatasau arte *The examples on this page are illustrative and not reports under the new framework, which may vary significantly in content and scope. JICA 7 15#17jiCA JICA at a Glance JICA Social / Sustainability Bond Framework Overview 5. Second Party Opinion from Moody's Investors Service Summary We have assigned an SQS2 Sustainability Quality Score (Very good) to Japan International Cooperation Agency's ('JICA' or 'the agency') social and sustainability bond framework dated 4 April 2023. JICA's use-of-proceeds framework has been established with the aim to finance projects across nine social categories and six categories with combined social and environmental objectives. The framework is aligned with the four core components of the International Capital Market Association's (ICMA) Green Bond Principles 2021 (including June 2022 Appendix 1), Social Bond Principles 2021 (including June 2022 Appendix 1) and Sustainability Bond Guidelines 2021. The framework also demonstrates a significant contribution to sustainability. Business Activities Funding Activities Sustainability quality score (SQS) JICA's Bonds - Social / Sustainability Bond Framework Alignment with principles USE OF PROCEEDS Overall alignment Not aligned Partially aligned Aligned Best Practices FACTORS ALIGNMENT Overview Use of proceeds Recent Highlights Evaluation and selection Management of proceeds Reporting ➤ Appendix Source: Assessment 7 April 2023 (Moody's Investors Service) *Moody's full Second Party Opinion is available on our website. SQS2 SQS5 SQS4 SQS3 Weak Intermediate Good SQS2 SQS1 Very Good Excellent Contribution to Sustainability Overall Contribution Poor Limited Moderate Significant High Expected impact Relevance and magnitude ADJUSTMENTS ESG risk management Coherence No adjustment No adjustment 16#18jiCA JICA at a Glance Business Activities Funding Activities JICA's Cooperation to Address Climate Change Leading sustainable development through support for partner countries on transitioning to a decarbonized and climate-resilient society JICA's Action 1 ■ Promoting implementation of the Paris Agreement by supporting developing partner countries in planning and implementation of climate change policies and measures, as well as access to climate finance JICA's Action 2 ■ Advancing co-benefit climate change solutions through projects that contribute to both addressing development challenges and combating climate change (energy & urban development, clean transportation, forestry, agriculture, management, disaster prevention, management, and healthcare) environmental water resource JICA's Bonds - Social/ Sustainability Bond Framework Overview Recent Highlights ➤ Appendix The Japanese Government Policy toward de-carbonization in ODA Photos by RENOVA, Inc. (the center photo) and JICA As indicated by the G7 Leaders' Communiqué from the June 2022 meeting of the Leaders of the G7, Japan has ended new direct government support for unabated international thermal coal power generation by the end of 2021. In addition, recognizing the importance of national security and geostrategic interests, Japan has committed to end new direct public support for the international unabated fossil fuel energy sector by the end of 2022, except in limited circumstances clearly defined by each country consistent with a 1.5° C warming limit and the goals of the Paris Agreement. JICA operates in accordance with such Japanese government policies. 17#19jiCA JICA at a Glance Business Activities JICA's Holistic Support for Addressing Climate Change India MITIGATION/ADAPTATION Orissa Forestry Sector Development Project (ODA loan) ✓ The planting resulted in 213,315ha total afforestation Induced 42 million days of wage workers ✓ The project supported women's empowerment 95 2,471,763 t-CO2 / year - estimated reduction amount of CO2 emission from Finance and Investment Cooperation commitment approved in 2022 Bangladesh ADAPTATION Haor Flood Management and Livelihood Improvement Project Funding Activities Kenya JICA's Bonds MITIGATION Olkaria V Geothermal Power Development Project - Social/ Sustainability Bond Framework Overview ✓ Expected GHG reduction will be 803,903 t-CO2 /year Recent Highlights ➤ Appendix Clean Transportation Gallery India Bangladesh Indonesia Vietnam MITIGATION Ninh Thuan Province Onshore Wind Power Project Indonesia ADAPTATION Urban Flood Control System Improvement in Selected Cities (Phase 2) ✓ Target to reduce flooded area to Okm² in 2026 from 10.9km² in 2016 Vietnam Photo by Delhi Metro Rail Cooperation Limited (the bottom left photo of Delhi Metro's Phase 4) and JICA *Image for Illustration Philippines Egypt 18#20jiCA JICA at a Glance JICA's approach to Peacebuilding Focuses on social stability by providing equitable public services Business Activities Funding Activities JICA's Bonds - Social/ Sustainability Bond Framework Overview Recent Highlights ➤ Appendix 16 PEACE, JUSTICE AND STRONG INSTITUTIONS Background Support for Syrians and host communities in Turkey Agreement Date: August 2021 (expected completion date: July 2028) Loan Agreement Amount: JPY 45 billion (USD 341 million) Since the outbreak of Syria's civil war in 2011, Turkey has hosted and temporarily protected more than 3.6 million Syrians, and became the world's largest host country. The increase in number and duration of stay of such Syrians has led to greater development needs for social infrastructure such as clean water supply, wastewater and solid waste management. Objective To improve living condition of the Syrians and host communities by developing basic infrastructure including clean water supply, waste water management and solid waste management in target provinces affected by influx of the Syrians Expected Outcomes Increase population served with water supply, waste water treated and solid waste collection Improvement of Water Quality (BOD(1)) Social stability in host communities Sewage System (image by JICA) JICA's Response to the Ukrainian Crisis Emergency Economic Recovery Development Policy Loan: 78 bn JPY in total Support for displaced people in Ukraine, neighbor countries and Japan Various technical & grant cooperation for recovery and reconstruction of damaged infrastructure (e.g. capacity strengthening for demining, for waste management of damaged infrastructures) Photo by JICA On-site training on mining detection for the State Emergency Service of Ukraine (SESU). The training was conducted in Cambodia and CMAC (Cambodian authority of demining), whom JICA has supported for decades for demining, were mobilized as trainers.. Source: Press Release (https://www.jica.go.jp/english/news/press/2021/20210823 41 en.html) Ex-Ante Evaluation (https://www2.jica.go.jp/en/evaluation/pdf/2021 TK-P22 1 s.pdf) More about JICA's Cooperation for peacebuilding (video) 19#21jiCA JICA's approach to "Better Health for ALL" 3 GOOD HEALTH AND WELL-BEING W Strengthen health systems and Universal Health Coverage (UHC) JICA at a Glance Business Activities Funding Activities 6 CLEAN WATER AND SANITATION ■ Support development and access to vaccines ■ Improve sanitation (clean water & sewage systems) JICA's Bonds - Social / Sustainability Bond Framework Overview ■ Establishing 100 hospitals ■ Enhancing case management (diagnosis, treatment and care) ■ Better access and care by DX Recent Highlights Prevention 'Water Supply Improvement Project in Kurdistan Region' (Northern Iraq) where access to clean water had been limited due the wars (ODA Loan project) Treatment Precaution East-West EWMC HOSPITAL ➤ Appendix Medical College Hospital Bangladesh that JICA supported has been the center for extensive care for COVID cases (Private Sector Investment and Finance project) in ■ Improving research and surveillance capacity for infectious diseases Noguchi Hideyo Institute, in Ghana, established by JICA's support in 1970s, has been the key hub in Africa for PCR testing to diagnose COVID-19 (Grant aid and Technical Cooperation) 20 20#22jiCA JICA at a Glance Business Activities Funding Activities JICA's Bonds - Social/ Sustainability Bond Framework Overview Recent Highlights ➤ Appendix JICA's Approach to Gender Equality and Women's Empowerment GENDER 5 EQUALITY Gender equality and women's empowerment: a key for sustainable development JICA's Approaches P - Five Priorities 1 Women's Economic Empowerment 2 Women's Peace and Security 3 Case Studies 1 | Women's Economic Empowerment Improve financial access for women in developing countries Countries India, Brazil, Columbia, Costa Rica, Georgia, Palestine, Vietnam, etc. ■ Financial support for women and women entrepreneurs of small and medium-sized enterprises in developing countries Project in Vietnam (photo by VP Bank) Women's Education and Lifetime Health 5 Gender Responsive Infrastructure Name of Project: Dhaka Mass Rapid Transit Development Project (I)~(V) Country: Bangladesh 4 Gender-Equal Governance 5 for Gender Responsive Infrastructure ■Contribute to women's social and economic empowerment with safe public transportation in Dhaka - the capital of Bangladesh ■Components better gender responsiveness: Women-only car, CCTV, Sari-guard, touchless electric prepaid card (no need of physical contact for ticketing) ■ The country's first female train operators (photos above) Dhaka Metro Line 6 started operation in December 2022 (photo right bottom) Female passengers' first ride with touchless electric prepaid ticket (photo left bottom) The first female train operators in Bangladesh (Photos by JICA) 21#23jica Finance and Investment Account - Financial Statement Balance Sheet In JPY bn unless otherwise stated JFY2019 JFY2020 JFY2021 JICA at a Glance Total assets 12,825.5 13,603.8 Loans 12,614.8 13,428.8 14,241.2 14,140.2 JFY2021 (USD) 107,888mn 107,123mn Investment securities 3.9 6.6 11.3 85mn Business Activities Total liabilities 2,910.2 3,572.9 4,131.9 31,302mn Borrowings from FILP 2,069.2 2,622.8 3,042.8 23,051mn Total net assets 9,915.3 10,030.9 10,109.3 76,585mn Government investment 8,150.7 8,202.2 8,249.2 Funding Activities Reserve fund 1,703.9 1,799.5 1,832.5 62,494mn 13,883mn Capital Ratio (Net assets / Assets) 77.31% 73.74% 70.99% JICA's Bonds - Social / Statement of Income Sustainability Bond Framework Overview Ordinary revenues Total ordinary revenues Ordinary expenses Recent Highlights Total ordinary expenses Extraordinary income and loss Total income JFY2019 JFY2020 JFY2021 In JPY bn unless otherwise stated JFY2021 (USD) 180.9 133.4 152.4 1,155mn 182.5 134.1 152.4 1,155mn 86.8 101.1 129.5 981mn 86.8 101.1 129.5 981mn -5.4 0 -0.1 -0.4mn 95.6 33.0 22.8 173mn ➤ Appendix Note: Totals may not correspond to the sum of each item, as numbers less than a hundred million yen have been rounded off. 22 222#24jica Risks Monitored Loans (Unit: billions of JPY unless otherwise stated) March 31, March 31, 2020 March 31, 2021 2022 JICA at a Glance March 31, 2022 (USD bn) Loans to Debtor in Legal Bankruptcy Past Due Loans 87 87 87 0.7 Business Loans in Arrears by 3 Months or More 0 Activities Restructured Loans 474 469 610 4.6 Funding Activities Total (A) 561 556 697 5.3 Balance of Loans Receivable (B) 12,729 13,462 14,173 107.4 A/B (%) 4.40% 4.13% 4.92% 4.92% JICA's Bonds - Social / Sustainability Bond Note Paris Club Framework Overview Recent Highlights ➤ Appendix The Paris Club is an informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced with bilateral-based public debts (including both ODA loans and non-ODA credits). As debtor countries undertake reforms to stabilize and restore their macroeconomic and financial situations, usually through IMF-supported programs, Paris Club creditors provide appropriate debt treatments to debtor countries in the form of: Rescheduling (i.e., debt relief by postponement); or Reduction in debt service obligations ■In principle, rescheduling is applied to ODA Loans securing principal of their face value. Totals may not correspond to the sum of each item, as numbers less than a hundred million yen have been rounded off. 23#25jiCA Appendix#26jica JICA at a Glance Project showcase ① Clean Transportation x Gender Equality Development of clean and safe public transportation to address climate change and women's empowerment in India 5 GENDER 産業と技術革新の EQUALITY 基盤をつくろう Business Activities 11 まちづくりを 住み続けられる Funding Activities JICA's Bonds - Social / Sustainability Bond Framework Overview 13 気候変動に 具体的な対策を Name of Project Country ODA Loan Amount Project Outline Expected reduction of CO2 emission 138,172 ton/year . Delhi Mass Rapid Transport System Project (Phase 4) (1) India 120 billion JPY (Estimated total project cost: 384 bil JPY) The project aims to cope with the increasing traffic demand by developing 3 new lines in Delhi. Expected outcomes are mitigation of traffic pollution, relief of traffic congestion, convenience in travel times, regional economic development and women empowerment. • Since 1997, JICA has been supporting the development of the entire Delhi Metro System. Other major cities including Bengaluru, Kolkata, Chennai, Mumbai, and Ahmedabad have followed similar paths with the support from JICA. Safe travel for women passengers (women-only cars and CCTVs) 5023 Equality in employment Recent Highlights Appendix Women-only car of Delhi Metro Ensure women passengers safety with CCTV and emergency alarms installed in metro stations Promote employment of women train operators 24#27jiCA Project showcase ② Access to energy x Climate Change エネルギーをみんなに そしてクリーンに 13 気候変動に 具体的な対策を Development of renewable energy in Kenya JICA at a Glance Business Activities Funding Activities Geothermal Power plants (Orkaria I) JICA's Bonds - Social / Sustainability Bond Framework Overview Recent Highlights • JICA has been supporting Kenya for the development of geothermal energy to cope with increasing energy demand. Other expected outcomes are improving livelihoods, regional economic development, and reducing emission of air pollutants and carbon dioxide. JICA also has been assisting in KenGen's capacity development through Technical Cooperation. ⚫ With JICA's support, Kenya has become the 6th largest geothermal energy producer in the world. ODA loan projects (Power plants and transmission lines) Oklaria | Geothermal Power Development Project (construction of new geothermal power plants (70MW x 3 units), Loan Amount: 29.5 billion JPY) - Olkaria V Geothermal Power Development Project (construction of new geothermal power plants (70MW x 2 units), Loan Amount: 45.7 billion JPY) - Olkaria 1 Units 1, 2 and 3 Geothermal Power Plant Rehabilitation Project (rehabilitation of 3geothermal power plants (15MW x 3 units), Loan Amount: 10.1 billion JPY) Appendix - Olkaria-Lessos-Kisumu Transmission Lines Project (development of 290 km transmission lines, Loan Amount : 12.4 billion JPY) 25#28jica JICA at a Glance Business Activities Project showcase ③ 1 POVERTY 2 ZERO HUNGER No poverty x Zero hunger 230thousand ton/year Increase in harvest for farmers around project areas in Kenya and Tanzania where JICA supported the development of irrigation systems 6 CLEAN WATER AND SANITATION Access to safe water 1.27 million people Number of people with new access to safe water in Tunisia, Morocco and Cabo Verde Funding Activities JICA's Bonds - Social/ Sustainability Irrigation systems developed through 'Small Scale Irrigation Development Project' in Tanzania Bond Framework 7 AFFORDABLE AND CLEAN ENERGY 13 CLIMATE ACTION Overview Recent Highlights Appendix Access to clean energy 2.76 million MW/year Increase in clean energy supply from the Olkaria Geothermal Power Plants in Kenya and the Harghada Solar Power Plant in Egypt 'Fez and Meknes Regions Water Supply Project' in Morocco Power plants developed through 'Olkaria I Unit 4 and 5 Geothermal Power Project' in Kenya 26#29Project showcase ④ jiCA 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE JICA at a Glance Business Strengthening regional connectivity in Africa Corridor development in Western Africa 11thousand cars Activities Increase in daily traffic volume western Ghana with the new bridge across the Volta river Corridor development in Eastern Africa 1.817 tons Increase in cargo volume after completion of 'New Bridge Across River Nile' in Uganda Funding Activities JICA's Bonds - Social / Sustainability 3 Bond Framework Overview New bridge across the Volta river (image picture) Map: MOFA Recent Highlights Appendix Road networks throughout Africa 520km Total distance of newly constructed or rehabilitated roads with JICA's support in Kenya, Rwanda, Mozambique, Burkina Faso and Cameroon 24 hours Time saved for crossing border of Botswana and Zambia with the new Kazungula bridge New Bridge Across River Nile Corridor development in Southern Africa 'New Kazungula Bridge' across Zambezi river bordering Botswana and Zambia 27#30jica Development of JICA JICA at a Glance March 1961 Business Activities Export-Import Bank of Japan Funding Activities JICA's Bonds - Social/ Sustainability Bond Framework Overseas Economic Cooperation Fund (OECF) Established: March 1961 Overview Japan International October 1999 Japan Bank for International Cooperation (JBIC) International Financial Operations October 2008 Spin off in April 2012 Japan Bank for International Cooperation (JBIC) Japan Finance Corporation (JFC) Japan International Cooperation Agency Overseas Economic Cooperation Operations Finance and Investment Finance and Investment Account Recent Highlights Cooperation Agency (JICA) Technical Cooperation General Account Established: August 1974 (1) Ministry of Foreign Affairs Grant Aid (2) Appendix (1) JICA was reorganized into an Incorporated Administrative Agency in October 2003. (2) The Ministry of Foreign Affairs continues to directly implement a part of Grant Aid needed for diplomatic policy. 28#31jica What is ODA? Official Development Assistance JICA at a Glance Definition provided by the Development Assistance Committee (DAC) of the Organization for Economic Co-operation and Development (OECD); Definition 1 To be undertaken by governments or government agencies Definition 2 Business Activities Definition 3 To promote economic development and welfare in developing countries as the main objective Loan must have highly concessional financial terms Funding Activities Japanese ODA and JICA Japanese Economic JICA's Bonds Cooperation - Social/ Sustainability Bond Framework Overview Recent Highlights Finance and Investment Bilateral Assistance Technical Cooperation jiCA ODA Grant Aid Multilateral Assistance (Contributions to the United Nations, World Bank, etc.) Other Official Flows (OOF) (cooperation through public funding other than ODA) Private sector, non-profit organizations (NGOs), etc. Appendix JBIC NEXI (export insurance) etc. 29 29#32jiCA JICA at a Glance Japanese Development Cooperation Charter ■Japan's Development Cooperation Charter was approved by the Cabinet in 2015 to set the guidelines for development cooperation activities for not only public agencies but all participants in tackling ever more diverse and complex development challenges ■The proceeds from JICA bonds are entirely applied to Japan's development cooperation based on the Basic Policies and Priorities as set out below Basic Policies 1 Contributing to peace and prosperity through cooperation for non-military purposes Business Activities 2 Promoting human security 3 Funding Activities JICA's Bonds - Social/ Sustainability Bond Framework Overview 2 Recent Highlights Cooperation aimed at self-reliant development through assistance for self-help efforts as well as dialogue and collaboration based on Japan's experience and expertise Priority Issues 1 "Quality growth" and poverty eradication through such growth Taking advantage of Japan's own experience, expertise and technology to realize inclusive, sustainable, and resilient growth Sharing universal values and realizing a peaceful and secure society Solidifying the foundations for development by establishing the rule of law, good governance, democracy and respect for basic human rights including women's rights, and also by contributing to peacebuilding, emergency humanitarian relief, and to fight against threats to stability and security Building as sustainable and resilient international community through efforts to address global challenges Taking full account of the discussions regarding international development goals including SDGS Ministry of Foreign Affairs of Japan Japan's Development Cooperation in the Years Ahead For peace, prosperity and a better future for everyone 3 Appendix 30#33jica JICA at a Glance Finance and Investment Activities - Schemes ODA Loans Sovereign-based lending to developing countries with highly concessional terms ■Majority of lending is in JPY, while some qualified borrowers are allowed to choose either JPY or USD for principal/interest (re)payment Business Activities (Borrower) Government or Government institution with government guarantee Funding Activities Concessional Lending in JPY/USD (Re)payments in JPY/USD (allowed in USD for qualified borrowers) Investment in public work projects for development purposes JICA's Bonds - Social / Sustainability Bond Framework Overview Private-sector Investment Finance Lending or equity investment to private-sector entities operating in developing countries Lending or equity investment denominated in JPY, USD or EM currencies Recent Private sector entity operating in developing countries Highlights Appendix Private sector-oriented (or PPP-based) investment for development purposes Lending or investment equity denominated in JPY, USD or EM currencies JICA Outstanding amount as of March 2022: JPY 14,169 bn (USD 107 bn) JICA Outstanding amount as of March 2022: JPY 318 bn (USD 2.4 bn) 31#34jica Budget for Three Main Arms of Operations JICA at a Glance Finance and Investment ODA Loans During JFY2021(1); 41 New Projects JFY2023 Budget Business Activities Funding Activities JICA's Bonds - Social / Sovereign-based lending with concessional conditions Private-sector Investment Finance Lending or equity investment to private-sector entities Bond Issuing Account Technical Cooperation ■ Support for human resources development, R&D, technology dissemination and the improvement of institutional frameworks required to advance economic and social development Delhi Mass Rapid Transport System Project in India 634 Projects 7% 7% O JPY 2.2 trillion 86% Sustainability Bond Assistance in agricultural production in Uganda Framework Overview Grant Aid 71 New Projects Recent Highlights Assistance in the form of grants with no repayment obligations to provide the goods and services necessary for economic and social development Financial and Investment JPY 1,894bn (USD 14.3bn) ■Technical Cooperation JPY 151bn (USD 1.2bn)* ■Grant Aid JPY 163bn (USD 1.2bn)* *Initial Budget Appendix Rural water supply in Ethiopia (1) Source: JICA Annual Report 2022 32 32#35jica General Account Financial Statements Budget - Scale of Operations* Technical Cooperation JFY 2021 (bn) JFY 2022(bn) JFY 2023(bn) JFY 2023 (USD, mn) JICA at a Glance Revenues from management grants 150.7 150.1 150.3 1,139 Revenues Other revenues 1.6 2.4 2.4 18 Total 152.3 152.5 152.7 1,157 Business Activities Administrative expenses Operational expenses 10.3 10.0 13.5 102 140.6 140.5 137.1 1,039 Expenditures Other expenses 1.4 Total 152.3 2.1 152.5 2.1 152.7 16 1,157 Funding Activities Grant Aid** Operation scale JICA's Bonds JFY 2021 (bn) Total 163.2 JFY 2022 (bn) 163.3 JFY 2023 (bn) 163.4 JFY 2023 (USD, mn) 1,238 - Social / Sustainability Bond Balance Sheet (as of Mar 31, 2022) Statement of Income Framework JPY (bn) USD (mn) JFY 2020 (bn) JFY 2021 JFY 2021 (bn) (USD, mn) Overview Total assets 356.6 2,702 Ordinary revenues 164.6 273.7 2,073 Total liabilities 233.9 1,772 Ordinary expenses 163.0 227.1 1,720 Recent Highlights Total net assets 122.8 930 Others 1.0 25.1 190.3 Total income for the current business year 1.6 71.7 543.4 Appendix Totals may not correspond to the sum of each item, as numbers less than a hundred million yen have been rounded off. * All figures are based on budget for the fiscal year. ** Inclusive of budget for operations implemented by the Ministry of Foreign Affairs *** Proceeds of the Bonds under JICA's Social / Sustainability Bond Framework will be NOT allocated to General Account 33 33#36jiCA JICA at a Glance Business Activities JICA' Project Evaluation Criteria Criteria in accordance with the DAC evaluation criteria, which provide an international ODA evaluation perspective as defined by the Development Assistance Committee (DAC) Criterion title Relevance Coherence Funding Activities JICA's Bonds - Social / Sustainability Bond Effectiveness Framework Overview Impact Recent Highlights Efficiency Sustainability Appendix Validity with project implementation (with the recipient country's development plans, development needs, social needs, and beneficiaries' needs in the target area) Whether the project is designed to focus on “beneficiaries” give consideration to vulnerable people, and ensure fairness and whether the project is adaptable enough to remain relevant if circumstances change during implementation Appropriateness of the project plan and logic of approach Consistency with development assistance policies of the Japanese government and JICA Synergistic effects and mutual relations with JICA's other projects (technical Cooperation, ODA Loan, Grant, etc.) Complementarity, harmonization, and collaboration with other assistance/projects in Japan, other development organizations, etc.: consistency with global frameworks (e.g. SDGs and other international targets and initiatives) and international norms and standards; and producing expected achievement in the project plan The degree of achievement of target level in target year of expected project outcome (including the usage of facilities and equipment) and any differential results across the groups Positive and negative indirect and long-term effects (systems and norms, people's well-being, human rights, gender equality, and the environment) Comparison of planned and actual project inputs, project period, and project cost Outlook on sustainability of effects that are realized by the project Institutional/organizational sustainability (organizational structures and personnel assignment), technical sustainability, financial sustainability (availability of funds to cover the operation and maintenance costs), environmental and social sustainability, resilience to risks, and operation and maintenance conditions (Reference Link) https://www.jica.go.jp/activities/evaluation/guideline/index.html https://www.jica.go.jp/our?work/evaluation/tech and grant/guides/index.html (Latest version available in Japanese only) 34#37jica Collaboration with Other Development Agencies JICA partners with bilateral and multilateral development agencies including World Bank, IFC, ADB, AfDB, IDB, AFD, KfW and USDFC in order to maximize the impact of cooperation efforts Agreement Date Co- Financer Project Area Project Name Commitment Amount JICA at a Glance Feb,2020 KFW Africa Bank aus Werantwortung Limited Partnership investment in Women's World Banking Capital Partners II SDGs GENDER FQUALITY 17 FOR THE GOALS PARTNERSHIPS $11.5mn Feb,2021 O AFD 7AFFORDABLE AND CLEAN ENERGY DECENT WORK AND ECONOMIC GROWTH 13 CLIMATE Egypt Development Policy Loan for Power Sector Reform ¥25bn AGENCE FRANÇAISE DE DÉVELOPPEMENT Business Activities AFFORDABLE AND 13 CLIMATE PARTNERSHIPS 17 FOR THE GOALS CLEAN ENERGY ACTION May,2021 ADB Vietnam Quang Tri Province onshore wind power project $25mn Jul, 2021 IDB Funding Activities Dominican Republic Program to Strengthen Public Policy and Fiscal Management in Response to the Health and Economic Crisis Caused by COVID-19 1 NO POVERTY GOOD HEALTH DECENT WORK AND 3 AND WELL-BEING ECONOMIC GROWTH 10 REDUCED INEQUALITIES $200mn Σ Oct, 2021 DFC Kenya Transforming collected organic waste into insect feed and organic fertilizer in Kenya: Impact investing $2.5mn in Sanergy (Private Sector Investment Finance) 2 HUNGER 6 AND SANITATION CLEAN WATER Oct, 2021 JICA's Bonds ADB Vietnam Project of promoting women's financial inclusion targeting micro, small and medium-sized enterprises CENDER EQUALITY DECENT WORK AND ECONOMIC GROWTH 8 DECENT WORK AND ECONOMIC GROWTH M INDUSTRY INNOVATION ANONFRASTRUCTURE 17 PARTNERSHIPS FOR THE GOALS $75mn - Social/ Sustainability Dec, 2021 IFC Iraq New Container Terminal Development Project at Umm Qasr Port NEUSTRY INNOVATION AND INFRASTRUCTURE 17 PARTNERSHIPS FOR THE GOALS $40mn Bond Framework Dec, 2021 IDB Dominican Republic Energy Efficiency Program CLEAN ENERGY ¥3.888bn AFFORDABLE AND CLIMATE 13 ACTION Overview POVERTY 2 GOOD HEALTH HUNGER AND WELL-BEING Jan, 2022 THE WORLD BANK IBROID Nepal Policy Loan for Economic Growth and Resilience ¥10bn 555 Recent Highlights Appendix Feb,2022 Sep, 2022 Nov, 2022 Tanzania Arusha-Holili Road Improvement Project ADB IFC European Bank Uzbekistan Zarafshan Wind Farm Project for Retraction and Develop ¥24.31bn INDUSTRY INNOVATION AND INFRASTRUCTURE AFFORDABLE AND 13 CLIMATE ACTION Not Disclosed 7 AFFORDABLE AND CLEAN ENERGY 13 CLIMATE CLIMATE IFC Egypt Kom Ombo Solar Power Project $160mn PARTNERSHIPS FOR THE GOALS PARTNERSHIPS FOR THE GOALS DECENT WORK AND ECONOMIC GROWTH M REDUCED 10 INEQUALITES CLIMATE 13 CLIMATE ACTION 35 55#38jica JICA at a Glance Business Activities Funding Activities Risk Management Risks related to ODA Loans • Sovereign risk, which constitutes a major part of the credit risk for ODA Loans, is evaluated by utilizing information from recipient governments, as well as multilateral institutions including the IMF and the World Bank • Though JICA's exposure can concentrate in a limited number of countries, the ODA Loan portfolio is well-diversified • The ODA Loan portfolio is affected by political and economic changes of borrowing countries especially because of its extended tenors Market Risk Management • • Enhanced capacity to absorb interest rate risk on the back of capital injections from the Government of Japan Market risk hedge includes interest rate swaps as well as cross currency swaps, securing collateral when necessary JICA's Bonds - Social / Sustainability Bond Framework Overview Recent Highlights Credit Risk Management • • Periodical reviews of borrower's credit based on internal credit rating system Prudent self-assessment of asset portfolio • With the credit risk management above, write-offs and loan loss allowance are managed in a proper manner Liquidity Risk Management Management of its cash flows includes securing multiple sources of funds such as Agency Bonds and borrowing under Fiscal Investment and Loan Program Appendix 36#39jica Countries Classification of ODA Loan Recipient (as of April 2023) JICA at a Glance Category GNI Per Capita Countries Low-Income-Least - $1,085 Developed Countries Business Activities Least Developed Countries or Low-Income Countries - $1,085 Funding Activities JICA's Bonds - Social/ Sustainability Bond Framework Overview Recent Highlights Appendix Lower-Middle-Income Countries $1,086 $4,255 Upper-Middle-Income $4,256- Countries Afghanistan, Burkina Faso, Burundi, Central African Republic, Chad, Democratic Republic of Congo, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Liberia, Madagascar, Malawi, Mali, Mozambique, Niger, Rwanda, Sierra Leone, Somalia, South Sudan, Sudan, Togo, Uganda, Yemen, Zambia Angola, Bangladesh, Benin, Bhutan, Cambodia, Comoros, Djibouti, Haiti, Kiribati, Lao PDR, Lesotho, Mauritania, Myanmar, Nepal, Sao Tome and Principe, Senegal, Solomon Islands, Syrian Arab Republic, Tanzania, Timor-Leste, Tuvalu Algeria, Bolivia, Cameroon, Cabo Verde, Republic of Congo, Cote d'Ivoire, Egypt, El Salvador, Eswatini, Ghana, Honduras, India, Indonesia, Iran, Kenya, Kyrgyz Republic, Lebanon, Micronesia, Mongolia, Morocco, Nicaragua, Nigeria, Pakistan, Papua New Guinea, Philippines, Samoa, Sri Lanka, Tajikistan, Tunisia, Ukraine, Uzbekistan, Vanuatu, Vietnam, Zimbabwe Albania, Argentina, Armenia, Azerbaijan, Belarus, Belize, Bosnia & Herzegovina, Botswana, Brazil, Colombia, Costa Rica, Republic of Cuba, Dominica, Dominican Republic, Ecuador, Equatorial Guinea, Fiji, Gabon, Georgia, Grenada, Guatemala, Guyana, Iraq, Jamaica, Jordan, Kazakhstan, Republic of Kosovo, Libya, Malaysia, Maldives, Marshall Islands, Mauritius, Mexico, Moldova, Montenegro, Namibia, Nauru, Niue, North Macedonia, Republic of Palau, Panama, Paraguay, Peru, Serbia, South Africa, St. Lucia, St. Vincent and the Grenadines, Suriname, Thailand, Tonga, Turkey, Turkmenistan, Venezuela *Underlined countries are STEP eligible(as of April 2023). Source: JICA Website (https://www.jica.go.jp/english/our work/types of assistance/oda loans/standard/c8h0vm0000aoex80-att/2023 01 02.pdf) 37#40jiCA Terms and Conditions of ODA Loans (effective from April 1, 2023) (1/2) Category GNI Per Capita (2021) Terms Fixed/ Floating Standard/Option Interest Rate (%) Repayment Period (years) Grace Period (years) Conditions for Procurement Low-Income Least Developed Countries (1) - US$ 1,085 0.10 40 Standard 0.50 Preferential Terms Option1 0.40 JICA at a Glance for high Specification (2) Fixed Option2 0.30 Option3 0.20 15 Longer option TORF+40bp 40 Standard TORF+30bp Floating(4) Option1 TORF+25bp Option2 TORF+20bp Business Least Developed Activities Preferential Terms(3) Option3 TORF+15bp 15 Standard 1.50 Countries or Low-Income Countries Option1 1.40 Fixed Option2 1.25 - US$ 1,085 Option3 1.05 Longer option TORF+50bp 40 Standard TORF+40bp Funding Activities Floating Option1 TORF+35bp Option2 TORF+30bp General Terms Option3 Standard TORF+25bp 1.60 Option1 1.50 Fixed Option2 Option3 1.35 1.15 JICA's Bonds - Social/ Sustainability Bond Framework Overview Standard 0.75 Preferential Terms Option1 0.65 Fixed for High Specification Option2 0.55 Option3 0.45 Longer option TORF+90bp Standard TORF+70bp Floating Option1 TORF+60bp Option2 TORF+50bp Preferential Terms Option3 TORF+40bp Standard 1.90 US$ 1,086 Lower Middle Income Option1 1.75 Fixed Countries Option2 1.55 US$ 4,255 Recent Highlights Option3 Longer option Standard 1.30 TORF+110bp TORF+90bp Floating Option1 TORF+80bp Option2 TORF+70bp General Terms Option3 TORF+60bp Standard 2.10 Appendix Option1 1.595 Fixed Option2 1.75 Option3 1.50 2222322232222322502253225782220225202250225 15 2276522765276500 10 Untied 10 10 10 10 Untied 10 10 7 6 15 5 10 7 6 15 5 10 7 6 15 5 40 10 10 7 15 1509 6 7 Untied 6 15 5 40 10 10 7 6 15 5 15 1915 10 7 6 38#41jiCA Terms and Conditions of ODA Loans (effective from April 1, 2023) (2/2) Category GNI Per Capita (2021) Terms Grace Period (years) 10 JICA at a Glance Business Activities Upper Middle Income Countries and Uppermost Middle Income Countries US$ 4,256 - Funding Activities JICA's Bonds Fixed/ Floating Standard/Option Interest Rate (%) Repayment Period (years) Conditions for Procurement Standard 0.95 30 Preferential Terms for High Specification Option 1 0.85 25 7 Fixed Option2 0.75 20 6 Option3 0.65 15 5 Longer option TORF+110bp 40 Standard TORF+90bp 30 11 10 10 Floating Option1 TORF+80bp 25 7 Option2 TORF+70bp 20 Preferential Terms Option3 Standard TORF+60bp 15 2.10 30 650 10 Option1 1.95 25 7 Fixed Untied Option2 1.75 20 Option3 1.50 15 65 Longer option TORF+130bp 40 10 Standard TORF+110bp 30 10 Floating Option1 TORF+100bp 25 7 Option2 TORF+90bp 20 6 General Terms Option3 TORF+80bp 15 5 Standard 2.30 30 10 Option1 2.15 25 7 Fixed Option2 1.95 20 6 Fixed Option3 Standard 1.70 15 5 0.20 40 10 Tied For consulting services, the interest rate will be minimal (0.10%) and the repayment, grace periods and conditions for procurement will be the same as those for main components. - Social/ Sustainability Bond Framework Overview Recent Highlights Appendix STEP(5) Consulting Services (6) Options for Program Type Japanese ODA Loans (7) In case of co-financing, it is possible to apply the same repayment terms as co-financer's lending while maintaining the concessionality of Yen loans. 1 For Low-Income LDCs, three-year transition period will be granted to recipient countries that will move from the category of Low-Income LDCs, and, during the period, the terms and conditions for Low-Income LDCs will be applied to the projects of the countries.. 2 Preferential Terms for High Specification will be applicable to projects promoting quality infrastructure. The applicability of the terms will be decided on a case-by-case basis. 3 Preferential Terms are applied to the following sectors and fields to all countries (except Low-Income LDCs): (i) Issues on Global Environmental and Climate Change, (ii) Health and Medical Care and Services, (iii) Disaster Prevention, and Reduction, (iv) Human Resource Development. 4 The base rate of floating rate is the value of the 6-month TORF, and the fixed spread remains constant over the life of the loan. If the base rate plus fixed spread is lower than 0.1%, the interest shall be 0.1%. 5 Special Terms for Economic Partnership (STEP) is extended to the projects for which Japanese technologies and know-how are substantially utilized, based on the recipient countries' request to utilize and transfer excellent technologies of Japan. Countries (except LDCs), which are eligible for tied aid under Arrangement on Officially Supported Export Credits issued by OECD, are eligible for STEP terms. 6 Irrespective of the income category, the term and condition of 0.10% interest rate and 40-year repayment period including 10-year grace period are applied to projects assisting recoveries from disasters, including Stand-by Emergency Credit for Urgent Recovery (SECURE). For Stand-by Emergency Credit for Urgent Recovery (SECURE), the term and condition of 20-year repayment period including 6-year grace period, or 15-year repayment period including 5-year grace period are also available, in order to apply Currency Conversion Option. 7 For Contingent Credit Enhancement Facility for PPP Infrastructure Development (CCEF-PPP), only floating rate will be applied irrespective of income category. The terms on conditions are individually set within the following range of interest rate as well as repayment period (In the case of short term financial support, however, the repayment period is 10 years); Interest rate: TORF +35 ~55bp, Repayment period: maximum 40-year(maximum 30-year drawdown period plus 10 year) Notes Under the EPSA (Enhanced Private Sector Assistance for Africa) initiative, the loan for projects co-financed with the AfDB are extended using "Preferential Terms," determined for each income category; in the case for Low-Income LDCs, the term and condition of 0.10% interest rate and 40-year repayment period including 10-year grace period are applied. For countries complying with ongoing IMF-supported programs or receiving grants from IDA, it is possible to modify the terms and conditions of the ODA Loans so as to meet the IMF's concessionality criteria. For General terms and Preferential terms, fixed rate for all countries (except Low-Income LDCs) will be revised on a regular basis so that its concessionality will be equal to that of floating rate. For Upper-Middle-Income Countries and Uppermost-Middle-Income Countries, floating rate will be applied in principle, although fixed rate could be applied. 39#42jica Comparison with Peer Institutions JICA maintains a high capital ratio while keeping a high level of annual commitment equivalent to that of peer institutions JICA at a Glance Bilateral Development Agencies Multilateral Development Agencies 90% Annual Commitment (USD, bn) - JICA Annual Commitment (USD, bn) - Others 50 50 80% Business 70% 71.0% · Capital Ratio (LHS) 81.2% .37.7 40 40 33.1 Activities 60% 30 50% 22.8 40% 20 Funding 30% 14.0 11.6 11.6 Activities 20% 16.0% •18:7% 17.4% 10 10 10% 6.1% 0% 0 JICA's Bonds JICA(1) AFD(2) KfW(3) - Social / Sustainability Bond Capital Japanese Government 100% French Government 100% German Federal Government 80% German Federal States 20% Framework ADB(4) Japan 12.8% U.S. 12.8% PR China 5.4% and others IBRD(5) U.S. 15.8% Japan 7.4% PR China 5.3% and others IDA(5) U.S. 9.9% Japan 8.3% U.K. 6.8% and others Overview Approx. Annual Commitment JPY 1,274.7 bn (eq. USD 11.6 bn) EUR 12.2 bn (eq. USD 14.0 bn) EUR 10.1 bn (eq. USD 11.6 bn) USD 22.8 bn USD 33.1 bn USD 37.7 bn As of March 2022 December 2021 December 2021 December 2021 June 2022 June 2022 Recent Highlights Note: Capital Ratio = Net Assets / Assets Exchange rate used: USD/JPY=110, EUR/USD=1.15 Source: Prepared by JICA based on the annual reports and other materials published by each organization For Finance and Investment Account. (1) (2) (3) Appendix (4) (5) 30 AFD Group: https://www.afd.fr/sites/afd/files/2022-05-11-34-16/Investors-presentation-afd-May-2022.pdf KfW Group: https://www.kfw.de/PDF/Download-Center/Finanzpublikationen/PDF-Dokumente-Berichte-etc/3 Finanzberichte/Financial-Report 2021.pdf (Annual commitment is based on activities under "Promotion of developing countries and emerging economies") https://www.adb.org/sites/default/files/institutional-document/814476/adb-annual-report-2021.pdf (Capital is from share of voting power) https://openknowledge.worldbank.org/bitstream/handle/10986/37972/AR2022v2.pdf (Capital is from share of voting power) 40#43jica JICA at a Glance Comparison with Peer Japanese Institutions Issuer Type Business Activities Purpose Funding Activities jiCA Japan International Cooperation Agency Agency Finances projects to promote international cooperation as well as the sound development of Japanese and global economy by supporting the socioeconomic development, recovery or economic stability of developing regions. -/A+/- JBIC Japan Bank for International Cooperation Agency Finances projects that promote overseas development and securement of resources which are important for Japan, maintain and improve the international competitiveness of Japanese industries, promote the overseas business aiming at preserving the global environment, and prevent disruption to international financial order. 100% owned by Japanese government Explicitly guaranteed by Japanese government A1/A+/- JICA's Bonds Ownership 100% owned by Japanese government - Social / Sustainability Guarantee Explicitly guaranteed by Japanese government Bond Framework Overview Rating (M/S/F) Latest Recent Highlights USD Bonds Issued JICA 3.250% US$900 mn due May 2027 JBIC 4.250% US$2.5 bn due Jan 2026 Format SEC Registered SEC Registered DBJ Development Bank of Japan (1) Agency Finances projects aiming to continue to expand financial frontiers, provide the best solutions for customers and society, pursue sustainable development for Japan and the world. 100% owned by Japanese government Explicitly guaranteed by Japanese government A1/A+/- (GG(2)) Not guaranteed by Japanese government A1/A/- (Non-GG(2)) DBJ 3.250% US$1.0 bn due Apr 2027 DBJ 4.375% US$600 mn due Sep 2025 RegS/144A RegS/144A Appendix (1) (2) Source: Issuers' public disclosures (as of Mar 2023) DBJ is split into two columns to distinguish government guaranteed and non-government guaranteed bonds. GG refers to government guaranteed bonds. 41#44jiCA Contact Budget for Finance and Investment Account, and Capital Markets Division, Treasury, Finance and Accounting Department Japan International Cooperation Agency Nibancho Center Building 5-25, Address Niban-cho, Chiyoda-ku Tokyo 102-8012 Japan TEL +81-3-5226-9279 E-mail [email protected] URL http://www.jica.go.jp/english/ir/index.html JICA Japan International Cooperation Agency 12945 Lagana Site Map FAQ Contact Us AAA Google Custom Search Q Share fin Investor Relations Home About JICA News & Features Countries & Regions Our Work Publications Home Investor Relations Investor Relations Investor Information Investor Relations Profile of JICA Bonds Issuance Records To achieve JICA's mission of achieving "human security and quality growth." JICA issues bonds in the capital market to fund projects in developing countries. JICA bonds are for those investors who look for reliable investment opportunities with socially contributive nature. Take a look at our investor information, profile of JICA bonds, and issuance records, or contact JICA headquarters for more information Contact SDGs In February 2016, JICA launched a SDGs Mainstreaming team within the organization to promote the SDGs and started organizational practices to achieve the goals. Our projects pivot around achieving SDGs. See how JICA is making impacts around the world here SUSTAINABLE GOALS DEVELOPMENT 17 GOALS TO TRANSFORM OUR WORLD ZEND 1 POVERTY 2 3 AND WELLBEING GOOD HEALTH QUALITY 4 EDUCATION W❤ DEMINKY DECENT WORK AND ECONOMIC GROWTH MONFRASTRUCTURE GENDER ALITY 6 CLEAN WATER AND SANITATION 10 REDUCED INEQUALITIES 12 RESPONSALE CONSUMPTEN These materials were prepared solely for the purpose of providing information to investors, and they are not intended to solicit subscriptions to or encourage purchases of bonds. Investors are advised to consider bond purchases only after a careful study of the details of the bond issue as described in the relevant explanatory documents provided by the issuer and in any other relevant and current materials they can obtain. A decision to purchase bonds is solely the responsibility of the investor. 42