OREANDA-NEWS. May 16, 2012. Kobe Steel, Ltd. hereby gives notice that it has decided to issue Domestic Unsecured Yen Bonds under the terms as set forth below:

I. Domestic Unsecured Yen Bonds due 22 May 20191. Name: 
Kobe Steel, Ltd.
 Series 59 Unsecured Bonds
(Limited Inter-Bond Pari Passu Clause)
2. Total Amount of Issue: 15 Billion Yen
3. Denomination of Bond: 100,000,000 Yen each
4. Interest Rate: 0.696% per annum of the principal of the Bonds
5. Issue Price: 
100% of the principal amount of the Bonds
6. Redemption Price: 100% of the principal amount of the Bonds
7. Maturity Date: To be redeemed in a lump sum on 22 May 2019
8. Offering Period: 16 May 2012
9. Closing Date: 22 May 2012
10. Method of Issue: 
Public offering in the domestic market
11. Date of Payment of Interest on the Bonds: Semiannually on 22 May and 22 November
12. Status of the Bonds: 
Unsecured by assets or guarantees
13. Fiscal Agent: 
Mizuho Corporate Bank, Ltd.
14. Underwriters: - Mizuho Securities Co., Ltd.
 - Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
 - Daiwa Securities Co. Ltd.
    as the "Joint Lead Managers"


Use of Proceeds: To be applied mainly toward the redemption of bonds
II. Domestic Unsecured Yen Bonds due 20 May 20221. Name: 
Kobe Steel, Ltd.
 Series 60 Unsecured Bonds
(Limited Inter-Bond Pari Passu Clause)
2. Total Amount of Issue: 10 Billion Yen
3. Denomination of Bond: 100,000,000 Yen each
4. Interest Rate: 1.117% per annum of the principal of the Bonds
5. Issue Price: 100% of the principal amount of the Bonds
6. Redemption Price: 100% of the principal amount of the Bonds
7. Maturity Date: 
To be redeemed in a lump sum on 20 May 2022
8. Offering Period: 16 May 2012
9. Closing Date: 22 May 2012
10. Method of Issue: Public offering in the domestic market
11. Date of Payment of Interest on the Bonds: Semiannually on 22 May and 22 November
12. Status of the Bonds: Unsecured by assets or guarantees
13. Fiscal Agent: The Bank of Tokyo-Mitsubishi UFJ, Ltd.
14. Underwriters: - Mizuho Securities Co., Ltd.
 - Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
 - Goldman Sachs Japan Co., Ltd.
    as the "Joint Lead Managers"


Use of Proceeds: To be applied mainly toward the redemption of bonds