October 9, 2018

ICBC Luxembourg Branch Climate Bond
Post-Issuance Verification Statement

Beijing Zhongcai Green Financing Consultant Ltd.

0Scope and Objectives
Industrial and Commercial Bank of China Ltd., (ICBC) Luxembourg Branchissued their first Certified Climate Bond (The Bond) in September, 2017.
Beijing Zhongcai Green Financing Consultant Ltd. (Zhongcai) has beencommissioned by Industrial and Commercial Bank of China Ltd. (ICBC),
Luxembourg Branch to provide the post-issuance verification of the Bond as anindependent and approved verifier under the CBS. The verification is performedin accordance with the CBS Version 2.1 and the assurance approach is in linewith the International Standard on Assurance Engagements 3000 (ISAE 3000):
Assurance Engagements other than Audits or Reviews of Historical Financial
Information.
The verification statement is based on information provided by the Issuer andthe Issuer is responsible for the integrity, accuracy and timeliness of theinformation. The verification opinions shall not be interpreted as any indication
or guarantee for relevant bond investment decisions. In no case may the opinions
hereof operate as the interpretation or guarantee for economic performance ofbonds, credit rating and actual utilization of the raised fund.

1

Work Undertaken
The verification team has conducted documents review, interviews with themanagement team of the Issuer and communications with relevant people toverify the consistency with CBS Version 2.1. The core matters for our assurance
to the Bond are to the following subjects of the Bond: Identification of Nominated Projects & Assets, Eligibility of the Nominated Projects & Assets,
 Management of proceeds,
 Reporting on use of proceeds and project performance.
According to Annual Report and other supporting documents provided byICBC Luxembourg Branch, the Issuer has allocated the Net Proceeds to
Nominated Projects & Assets falling under the following Sector Criteria of the
Climate Bonds Standard:
1. Solar (Version 2.0)
2. Wind (Version 1.0)
3. Low Carbon Transport (Version 1.0 - including Criterion 5, Part (b), page
17: “No more than 50% on the share of fossil fuel freight t-km transportedby the line”)
A summary of the verification procedures in shown in the following table:
CBS
Item

CBS
Requirement

4

NominatedProjectsAssets

Verification Procedures

Review the Green Bond Framework for Industrial and& Commercial Bank of China to ensure that the bond meet
the CBS requirements.
Review that the Nominated Projects & Assets meet theeligibility criteria set out in the Solar, Wind and Low
Carbon Transport Criteria of the CBS.
Review the Declaration made by ICBC Luxembourg
Branch to determine the Nominated Projects & Assets had
not been nominated to other Certified Climate Bonds.

5Use
Proceedsof Confirm all the Net Proceeds were used for refinancing.
Review Internal accounts systems to ensure all proceeds
are earmarked to Nominated Projects & Assets.
Review allocation of the Net Proceeds of the Bond toconfirm that the Net Proceeds of the Bond were allocatedto Nominated Projects & Assets within 24 months ofissuance of the Bond.
26

NonContaminationof Proceeds

Review internal accounts systems to ensure all proceeds
are earmarked to Nominated Projects & Assets.

7Confidentiality

The information about the Nominated Projects & Assets
were provided to the Verifier and are available to CBI ifrequired.

8

Reporting

Review ICBC’s Annual Report on the nominatedprojects/assets to bondholders against the CBS
requirements

9Climate Bond Review Nominated Projects & Assets against CBITaxonomyeligibility taxonomy of the Solar, Wind and Low CarbonTransport.

10

TechnicalCriteria

11

Project Holding Review the Nominated Projects & Assets of the Bond andthe use of the proceeds to ensure that the total investmentin the Nominated Projects & Assets is greater than theprincipal amount of the Climate Bond.

12

Settlement
PeriodReview allocation of the Net Proceeds of the Bond toconfirm that the Net Proceeds of the Bond were allocatedto Nominated Projects & Assets within 24 months ofissuance of the Bond.

13Earmarking

Review internal accounts systems to ensure all proceeds
are earmarked to Nominated Projects & Assets.

The Bond is certified under the Solar, Wind and Low
Carbon Transport Criteria. All the Nominated Projects &Assets meet the specific eligibility criteria of the relevant
Sector-Specific Criteria documents.

3Verification Opinion
Beijing Zhongcai Green Financing Consultant Ltd. (Zhongcai) has performed
the Post-issuance verification of the Bond in accordance with the Climate Bonds
Standard Version 2.1 and the International Standard on Assurance Engagements
3000 (ISAE 3000): Assurance Engagements other than Audits or Reviews ofHistorical Financial Information.
The assurance procedures include documents review, interviews with themanagement team of the Issuer and communications with relevant people. Basedon the limited assurance procedures conducted, nothing has come to our attention
that the Bond is not in line with the requirements of the Climate Bonds Standard
and the relevant Sector Criteria (Solar Version 2.0, Wind 1.0 and Low Carbon
Transport Version 1.0).

Verification TeamThe verification team of Beijing Zhongcai Green Financing Consultant Ltd.
Team

Name

Signature

Han ZHANG
Verification TeamYumei TONGTechnical Review Team

Ying CUI4