Contents The Whys When it comes to value creation 1 The - PowerPoint PPT Presentation

Green Bonds presentation Christopher Flensborg From Challenge to implementation January 2015

Contents The Why’s – When it comes to value creation 1 The considerations – when integrating 2 Who are active – and when 3 4 Reflections 5 Requirement and outlook 1

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Green Bonds vs. traditional senior Bonds  Public dimensions  Public dimensions  Liquidity strategy  CSR  Liquidity strategy  CSR  Stakeholder  Stakeholder  Public missíon  Policy  Public mission  Policy relationships and relationships and  Regular bond issue interaction interaction  Green bond issue  Market  Market  Treasury  Financial targets  Treasury  Financial targets communication communication  Traditional Business, Policy and Engagement are segregated – Treasury and investment units often act outside the overall business to secure integrity in investment decisions  The “Why” enforce collaboration and the quality control drive integration – A prudent value proposition analysis and a general Due Diligence require cross divisional interaction 3

The Green Bond market – Status & outlook An evolution – along the Governance curve  Starting with Issuers who know how to create frontier business with high Governance  Continue to society driven mandates  Ending at the competitive field (private) – driven by investor demand  The Green Bond Principles – Strength and Weaknesses Market development State Municipalities Supra- Project Corporates related & Cities nationals Financing agencies Insurance Asset State Pensions Retail Foundations companies Managers & mission driven 4

The Fiduciary considerations 1 Liquidity 2 Additional value (s) 3 Managing implementation 4 Stakeholder communication 5 Benefits 5

Issuers and investors deepen engagement in tandem SEB is a pioneer and the global leader within the field of Green Bonds Selected Green Bond issues SEB Green Bond placements and number of investors SEK 2,100m 5 year SEK 850m 5 year SEK 1bn/500m USD 250m 3.000% fixed bond FRN 2.500% / FRN 1.625% fixed bond April 2019 April 2019 April 2019 April 2018 Sole Bookrunner Sole Bookrunner Joint Lead Joint Lead SEK 500m USD 500m USD 300m 2.915% fixed bond/ FRN 0.750% fixed bond 0.875% fixed bond October 2019 October 2016 January 2017 Sole Lead Joint Lead Joint Lead USD 1billion USD 550m USD 500m 0.625% fixed bond 0.375% fixed bond 0.750% fixed bond November 2016 Aug 2015 Nov 2016 Joint Lead Joint Lead Joint Lead Source: Bloomberg and SEB Investors are being activated at an increasing pace but are at different stages in developing their Green Bond strategies: - Socially Responsible Investors (SRI) - Pension funds SEK 1,300m SEK 3,250m SEK 500m USD 500m 1.774% / FRN 3.500% fixed bond - Insurance companies - Asset Managers 2.750% fixed bond 1.750% fixed bond September 2032 May 2016 November 2014 February 2018 - Corporate / institutional liquidity pools - Bank treasuries Joint Lead Sole Lead Sole Lead Joint Lead - CAtlas Copcol banks 6

Green Bond issuers Sample of issuers where SEB interact(ed) with strategic advisory on Green Bond strategies CICERO Second Investor Issuer Issuer type Allocations Earmarked a/c opinion reporting First Green Bond  World Bank Mitigation Supranational Y Y Y issuer  (IBRD) Adaptation  Mitigation African Development Bank Supranational Y Y Y  Adaptation  Renewable Energy First municipal City of Gothenburg Municipality  Energy Efficiency Y Y Y Green Bond issuer  Water Management  Mitigation European Bank of Reconstruction and Supranational Y Y Y Development  Adaptation  Renewable Energy First Canadian  Export Development Canada Export Import Agency Energy Efficiency Y Y Y Green Bond issuer  Water Management  Renewable Energy European Investment Bank Supranational Y Y  Energy Efficiency  Mitigation International Finance Corporation Supranational Y Y Y  Adaptation  First Norwegian Renewable Energy Kommunalbanken, Norway Municipality Y Y Y Green Bond issuer  Waste Management Regional Development  KfW Energy Efficiency Y Y Y Bank  Renewable Energy First non-supranational Korea Export Import Bank Export Import Agency Y Y Y Green Bond issuer  Energy Efficiency Nederlandse Waterschapsbank (NWB  Water agency Water management Y Y Y Bank)  Renewable Energy Nordic Investment Bank Supranational Y Y Y  Energy Efficiency  Renewable Energy Stockholms Läns Landsting County Y Y Y  Energy Efficiency  Sustainable Forestry First Nordic listed  Svenska Cellulosa AB (SCA) Corporate Renewable Energy Y Y Y Green Bond issuer  Energy Efficiency  Skanska Corporate Sustainable buildings Y Y Y First corporate  Sustainable Buildings 7 Vasakronan Corporate Y Y Y Green Bond issuer  Renewable Energy

The five pillars of the Green Bond framework Simplicity – scalability 1 Governance – selection process 2 Credibility – vetting of Green 3 4 Traceability – earmarked account Transparency – reporting 5 8

Increasing media attention 9