The Bank of Tokyo-Mitsubishi UFJ, Ltd. Announces Notice Concerning Borrowing under Unsecured Perpetual Subordinated Loan with Write-Down Clause

(1) Optional cancellation of interest payments

BTMU, at its discretion, may cancel all or part of the interest payments under the Loan when it deems necessary.

(2) Interest payable amount limitation

The amount of interest payable on any interest payment date under the Loan shall not exceed the Interest Payable Amount and BTMU shall not pay any amount of interest under the Loan in excess of the Interest Payable Amount.

(The “Interest Payable Amount” will be calculated by dividing the Adjusted Distributable Amount on a pro rata basis among the amount of interest payable under the Loan and the total amount of interests and dividends, etc. payable on the same interest payment date under the preferred shares directly issued by BTMU which rank most senior in priority of payment as to dividends among shares as well as parity securities (including parity loans).)

(The “Adjusted Distributable Amount” will be the distributable amount under the Companies Act as of the interest payment date less the total amount of interests and dividends, etc. of parity securities (including parity loans) and junior securities (including junior loans) paid on any day preceding the interest payment date within the fiscal year in which such interest payment date falls.)

(1) Write-down upon the occurrence of a loss absorption event

When BTMU’s consolidated or non-consolidated Common Equity Tier1 capital ratio falls below 5.125%, the principal amount and the corresponding amount of interest under the Loan shall be written down to the extent necessary, as determined by BTMU in consultation with the Financial Services Agency of Japan or other relevant regulatory authority, to make BTMU’s consolidated and non-consolidated Common Equity Tier1 capital ratio exceed 5.125% by write-down or conversion to ordinary shares of all or part of the Loan and its other Additional Tier1 liabilities on a pro rata basis.

(2) Write-down upon the occurrence of a non-viability event

The principal amount and interests under the Loan shall be written down to zero when it is confirmed that the “item 2 measures (dai nigou sochi)” or the “item 3 measures (dai sangou sochi)”, which are the measures set forth in Article 102, Paragraph 1, Items 2 and 3 of the Deposit Insurance Act, or that the “specified item 2 measures (tokutei dai nigou sochi),” which are the measures set forth in Article 126-2, Paragraph 1, Item 2 of the Deposit Insurance Act, need to be applied to BTMU.

(3) Write-down upon the occurrence of a bankruptcy proceedings commencement event

The principal amount and interest under the Loan shall be written down to zero when it is adjudicated that BTMU becomes subject to bankruptcy and other insolvency proceedings.