News ReleaseLawson Bank Preparatory Company, Inc. to apply for the Preliminary Examination of License of Banking Business, and enter into syndicated loan agreement

NEWS RELEASE

TOKYO, JAPAN, 3 26, 2018

Lawson, Inc. (“Lawson”) hereby announces that it has been decided at the Board of Directors’ Meeting held today that the Lawson Bank Preparatory Company, Inc.(“LBP”), a subsidiary of Lawson, applies for the Preliminary Examination* of License of Banking Business to Financial Services Agency, and that LBP enters into syndicated loan agreement. Details are described below.

*The application for the Preliminary Examination is pursuant to Chapter 4 Article 1 of Banking Act and Chapter 2 of Ordinance for Enforcement of the Banking Act.

1. The application for the Preliminary Examination of License of Banking Business

(1) Overview of the applicant company (planned)
Company name : Lawson Bank Preparatory Company, Inc.
Company name (after change) : Lawson Bank, Inc. *
Location : 2-1-1 Osaki, Shinagawa-ku, Tokyo, Japan
*LBP will apply for the Preliminary Examination, and it will change its company name to “Lawson Bank, Inc.” after the examination has been completed.
(2) Background and purpose
Lawson is continuously evolving as an “essential part of our communities” based on its corporate philosophy “Creating Happiness and Harmony in Our Communities”, through providing multiple functions within the society including supporting the elderly, contributing to local communities, and supplying goods in times of disaster. Lawson has been providing a limited selection of financial services by operating ATM business under Lawson ATM Networks, Inc. (“LANs”). In order to enhance the convenience of our financial services and to strengthen the functions to support the daily lives of our customers by leveraging our previous experiences and foundation of our business, we have decided to apply for the Preliminary Examination of License of Banking Business to establish a new bank, Lawson Bank, Inc. (“The New Bank”)
LBP will absorb the ATM business divided from LANs (LANs will be the split company, LBP will be the successor company), and thus plans to provide more convenient financial services starting from ATM services. We will provide further information regarding the services after the details have been decided.
(3) Impact on Lawson’s financial results
The application for the examination will have no impact on Lawson’s consolidated financial results of the fiscal year ended February 2018.

2. The syndicated loan agreement

LBP will enter into syndicated loan agreement in order to finance working capital of the New Bank. Drawdown based on this agreement is subject to obtaining the License of Banking Business.
Arranger : The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Co-Arrangers : Mizuho Bank, Ltd. / Sumitomo Mitsui Banking Corporation
Borrower : Lawson Bank Preparatory Company, Inc.
Amount : 130 billion yen
Date of agreement : March 2018 (to be determined)
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