January 2024

PIMCO’s Best Practice Guidance forSovereign Sustainable Bond Issuance
PIMCO’s ESG (environmental, social, and governance) analyst team outlines the following bestpractices for Sovereign issuers of green, social, sustainability, sustainability-linked or SDG bonds.
Outline:I) Best practice guidance for green, social and sustainability bondsII) Sustainability-linked bonds
III) SDG Bonds
IV) Background on PIMCO’s Sovereign Sustainability Assessment
I)

Best practice guidance for green, social and sustainability bonds
1. International Capital Market Association (ICMA) Principles and Guidelines: Bond framework should be clearly aligned withICMA Green and Social Bond Principles and Sustainability Bond Guidelines (e.g., setting out eligibility thresholds, and planned
impact reporting) with specific projects details (e.g., example of potential projects being considered or alternatively a set ofprojects the sovereign has previously included).
2. Sustainable Development Goals (SDGs): Use of proceeds should be clearly aligned with the targets underpinning the
Sustainable Development Goals, with impact reporting referencing those specific targets or indicators. ICMA has provided a highlevel mapping to the SDGs and the United Nations Development Programme (UNDP) has developed SDG Impact Standards for
Bond Issuers.
3. Sustainability disclosure and connection with the Sovereign’s long-term development strategy: Bond framework shouldbe aligned with the issuer’s sustainability strategy and supported by tangible goals as well as targeted action plans and policies:
a. Framework should provide an overview of the issuer’s sustainable development priorities, environmental/social
baselines, and public policies supporting the bond issuance. Where appropriate, the Sovereign should make reference
to its Integrated National Financing Framework for the SDGs.
b. Framework should target key sustainable development challenges facing the Sovereign, such as reducing income
inequality, improving health outcomes, closing the infrastructure gap, access to energy concerns as well as theadaptation to the physical risks from climate change.
c.

Clear link between the framework and the issuer’s climate change mitigation strategy (e.g., explain how the framework
will contribute to achieve the Sovereign’s commitments to the Paris Agreement and beyond).

4. Use of proceeds (UOPs): The issuer should communicate the expected UOP by type of activity (e.g., social vs green split,
which categories under the framework will be prioritized and examples of expenditures under each category at project/initiative
level) and type of spending (e.g., tax expenditures, investment expenditures, operating expenditures, including research anddevelopment expenses ahead of the new issue).
a. Communication of expected UOP breakdown in the form of a pre-issuance allocation report, as done by Brazil andColombia among others.
b. UOP should finance/refinance eligible capital or operating expenses. Personnel salaries or non-domestic projects
should be excluded.
c.

Eligible projects should have duration at least equal to the full life of the bond. Alternately, the issuer should commit
repayments and maturing investments to be reinvested in additional eligible projects until the maturity of the bond.
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d. Eligible Expenditures should be mapped to the relevant UN Sustainable Development Goals (SDGs) with associatedreporting metrics for proposed projects as per ICMA guidance.
e. Eligible projects should be clearly earmarked and easily trackable (not part of general budget expenditure).
f.

Countries are encouraged to proactively communicate the estimated alignment of the Use of Proceeds with the best
available taxonomy for sustainable activities.

5. Lookback: If using a lookback period, issuer should indicate how much of the use of proceeds (UOP) will be allocated toprojects already funded (approximate estimate can be acceptable).
a. Preference is for UOP to fund new investments.
b. If UOP will be used to refinance or re-label prior spending, this should be disclosed.
c.

Strongest framework would be those with an explicit cap on refinancing and, with short lookback periods.

6. Negative impacts and Exclusions:a. Exclusionary policies should specify a comprehensive set of exclusions based on activities but also exclude projects
that may create significant negative externalities, such as those that would affect local communities.
b. Framework should outline safeguards to avoid (as much as possible) unintended negative externalities.
c. For projects/programmes where substantial negative externalities are possible, the disclosure before the issuance of astrong social/environmental risk assessment from a reputable third party provider is recommended.
7. Time Period Of Allocation:a. It is best practice to hold bond proceeds in a segregated account before allocation.
b. Temporary use of proceeds: Issuers should avoid “temporary” Use of Proceeds. In cases where this is unavoidable,
the issuer should transparently justify any temporary uses related to debt refinancing or investment (e.g., project
timetable, detailed disclosure and appropriate timeline for full allocation), demonstrating that the delay in allocation to
Eligible Projects is minimized. The debt repayment and investments concerned should not be related directly or
indirectly to any activities misaligned with the green bond objectives or ESG exclusion criteria.
8. Transparency and Verification: Provide supporting documentation to investors in a timely fashion so they can make an
informed underwriting decision, at least a full working day prior to issuance (for syndicates).
a. Bond framework should be a standalone document (i.e., not only as a Use of Proceeds statement in the prospectus
or pricing supplement) available publicly on the issuer’s website. In jurisdictions where there are legal challenges topublishing a separate framework in advance of a new issuance, issuers should make the framework available on theirwebsite as soon as feasible after the deal is announced.
b. External review (second party opinion, verification, or certification).Verification is currently not a requirement toachieve Green Bond Principles (GBP), Social Bond Principles (SBP) alignment, though this is recommended practice.
Climate Bonds Standards: more climate-science focused, this standard goes beyond the ICMA Green Bonds
Principles to set forth more targeted eligibility criteria that are consistent with the 1.5 degrees Celsius target
for containment of temperature increase.
 We have preference for second-party opinion (SPO) providers that holistically assess the framework against
best practices, including its sustainability impact, rather than just confirming alignment with ICMA Principles.
c. Previous green, social or sustainability bond reports (allocation, impact report)
9. Management and Allocation of Proceeds: ICMA and Climate Bond Standards require an outline of how proceeds will be
managed and allocated by the sovereign. This outline can include disclosure of the ministries or individuals involved, whichstakeholder has the ultimate decision-making responsibilities for fund allocation, and the frequency at which the involved parties
meet to decide on projects. We view as best practice:

The inclusion of a structured and comprehensive plan for managing proceeds allocation which should include theestablishment of working groups involving various departments, with appropriate checks and balances. Brazil’s
Sustainability Framework provides a good example of this, where the government created a Sovereign Sustainable
Finance Committee (CFSS) including representatives from various government sectors, seeking to ensure a diverse2range of expertise and strategic alignment. The CFSS is responsible for planning, implementing, and monitoring the
Framework for sustainable bond issues and identifying eligible expenses in line with criteria and exclusions establishedby the framework as well as other processes implemented to determine and manage environmental and/or social risks
associated with the expenses.
The involvement of affected communities/NGOs in the fund allocation process. As an example, Canada Green Bondframework includes the Crown-Indigenous Relations & Northern Affairs Canada in their Interdepartmental Green
Bonds Committee, which is responsible for the Project selection and Evaluation.

10. Reporting: should be in line with ICMA/Climate Bond Initiative (CBI)/SDGs and provide details regarding the content andpublishing frequency of allocation and impact reports.
a. Issuers should commit to providing an updated impact report at least annually as long as each bond remains
outstanding, allowing investors to track changes and progress. The first report should be published no later than one
year after the initial bond issuance.
b. Allocation reporting should detail actual proceeds allocation rather than the portfolio of eligible expenditures. Reporting
should include how much of the proceeds are invested.
c.

Reporting should be outcomes-based, and link to the country’s broader targets, outlined as previously stated in theframework (e.g., Nationally Determined Contributions (NDC) GHG reduction pledges, National Biodiversity Strategies
and Action Plans (NBSAPs)etc.)

d. Progress on funded initiatives/projects should be produced in conjunction with explicit commitments to reporting broad
and internationally comparable metrics/frameworks (e.g., reporting in line with EU/ Local Taxonomies, SDGs, as wellas having definition of relevant metrics benchmarked with international standards such as . UN CBD, FAO etc..)e. Include the geographic location of each project and details on target population and beneficiaries of stated project aswell as details on the methodology and calculation for the metrics reported. Example of good practice is Mexico SDG
bond.
II)

Sustainability-linked bonds (SLBs)

In general, we encourage countries to issue SLB given the flexibility that the instrument allows to reach targets. There are additional
investments that a country must make to meet its sustainable development initiatives beyond what an ESG labeled use of proceeds bondcan fund. SLBs allow the Sovereign to support sectors of the economy that may lack adequate eligible assets and support regulargovernment activity, while working to achieve their sustainability targets in a context of higher government accountability.
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The Sustainability-Linked Bond Principles (SLBP) provide a framework for issuers to connect financing needs with theachievement of country-wide sustainability performance and targets that advance the United Nations (UN) Sustainable
Development Goals (SDGs). PIMCO sees bonds linked to the SDGs as an emerging best practice for issuers seeking todemonstrate positive sustainability outcomes. We encourage issuers to come to the market with frameworks that align withthese voluntary process guidelines (including the Q&A that is part of the ICMA Guidance Handbook).SLBs allow the Sovereign
to support sectors of the economy that may lack adequate eligible assets and support regular government activity, while working
to achieve their sustainability targets in a context of higher government accountability.

-

The table below provides examples of robust KPIs according to the criteria identified by ICMA and the World Bank. ICMA’s
Illustrative KPIs Registry includes high-level recommendations as well as illustrative examples for the selection of Key
Performance Indicators (KPIs) for Sustainability-Linked Bonds (SLBs). We encourage issuers to build on resources such as
ICMA’s KPI table and materiality map to incorporate several relevant and material KPIs that are not restricted to greenhouse gas
emissions (e.g. access and affordability, biodiversity, water, electricity or healthcare).The World Bank has released a set ofrecommendations “Key Performance Indicators for Sovereign Sustainability-Linked Bonds” that is aimed at providing
constructive thoughts around the uptake of SLBs by sovereign issuers. Although the report focuses on the environmental Key
Performance Indicators (KPIs),the World Bank has also made publically available a wide range of ESG data through their
Sovereign ESG Data portal, which can be used as a helpful reference for Sovereigns as they think about developing their own
SLB framework.

3Considerations for robust and Material KPIs

KPI criteria

ICMAWorld Bank

Chile as an example

Relevance

Relevant, core and material
to the issuer's overallbusiness and high strategic
significance to the issuer's
current and future
operations

Data are plausibly
associated withsovereigninterventions (forexample, nationallevel investment,
national laws, andnational
regulations).

Current

Measurable or quantifiable
on a consistentmethodological basis

Data are current andproduced withenough frequency(that is, at least oncea year) so they canbe adequately linked
with financial
incentives topromote sustainable
performance.

Absolute GHG Emissions (KPI 1)
and Share of Non-Conventional
Renewable Energy Generation in
the National Electric System(KPI2), both material and tied tothe country’s Nationally
Determined Contribution (NDC).
Inclusion of percentage ofwomen in board member
positions at companies thatreport to the local Chilean
markets regulator CMF) as social
KPI3
KPI1 methodology in line with
IPCC guidelines, data sourced
from Chile’s latest National
Greenhouse Gases Inventory(NGHGI) with enough data
coverage (1190-2018) to assess
performance from baseline(2018). KPI2 covers Chile’s entire
energy grid and it is measured
through theGross Monthly Generation SEN(Chilean Main System)(MWh)published by the National Energy
Commission (CNE). KPI3 will be
published in the annual Gender
Indicator of Chilean Companies
Report (Reporte de Indicadoresde Género de las Empresas en
Chile), which includes theparticipation of the International
Labour Organization and thenon-governmental organization
Chile Mujeres to support the
integrity of the provided data
and to avoid errors through thecollection and reporting process.
The information is provided byindividual companies andreviewed by the Chilean
Financial Market Commission,
with any incorrect informationdelivery being subject to legal
penalties.
4Benchmarkable

Benchmarkable using
external reference ordefinition to facilitate theassessment of SPT's level ofambition

Data are available
across mostcountries. Data
within datasets are
consistent andcomparable (forexample, reported
using the same
methods) acrosscountries

Availability

When possible, chosen KPIs
should be ready available
and included in relevant
past publications in order tobe able to evaluate
historical performance. In
situations where the KPIs
selected have not beenpreviously disclosed, to theextent possible, the issuer
should provide historicalexternally verified KPIs
values covering at least theprevious 3 years
When possible, chosen KPIs
should be ready available
and included in relevant
past publications in order tobe able to evaluate
historical performance. In
situations where the KPIs
selected have not beenpreviously disclosed, to theextent possible, the issuer
should provide historicalexternally verified KPIs
values covering at least theprevious 3 years

Data are available
across mostcountries. Data
within datasets are
consistent andcomparable (forexample, reported
using the same
methods) acrosscountries

Regularity

Data are provided insequence with equalintervals between
them over a long
period of time

KPI1 methodology in line with
IPCC guidelines, data sourced
from Chile’s latest National
Greenhouse Gases Inventory(NGHGI) with enough data
coverage (1990-2018) to assess
performance from baseline(2018). KPI2 covers Chile’s entire
energy grid and it is measured
through theGross Monthly Generation SEN(MWh) published by the National
Energy Commission (CNE) andfor KPI3 companies in scope aremainly securities issuing
companies that report to the
local Chilean markets regulator (CMF).

KPI1 has coverage available from1990 to 2018 (baseline), KPI2 hasdata available from 20182021(baseline) and KPI3 hascoverage available from 2019 to2022(baseline).

KPI1 produced biennially,
consistent with current NDC
protocol while information on
KPI2 and KPI3 will be produced
annually

Sources: ICMA, World Bank, Government of Chile. FOR ILLUSTRATIVE PURPOSES ONLY.
In addition to the guidelines outlined by ICMA and the guidance provided by the World Bank:
1. We advise against the use of ESG ratings as KPIs, and encourage issuers to build on resources such as the ones suggested
above.
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2. To be compelling, Sustainability-linked bonds should include interim sustainability performance targets to reflect the issuer’scommitment to make consistent progress and the importance of clear intermediary targets. Signaling/incentive mechanisms we
prefer are step-up in coupons as opposed to step-down, additive in size with a maximum cap.
3. An issuer is encouraged to update its ambition (calibration of the target) linked to the SLB if it is ratcheted up ahead of the trigger
date, and disclose details (a timeline and roadmap) of this plan to increase the ambition as appropriate.
4. External verification of the historical performance for the KPI is recommended to be provided prior to the issuance and the issuer
is encouraged to disclose relevant details regarding the methodology for the KPI calculation and data quality based onrecognized standards (e.g., Partnership for Carbon Accounting Financials (PCAF) for financed emissions, the Oil and Gas
Methane Partnership for methane).
5. PIMCO recommends practices in line with typical covenants for bonds that are not labelled as ‘sustainable’ to facilitate themainstreaming of the instrument and its connection with credible and ambitious targets, i.e. changes in the financing conditions
including cash payments to investors rather than charitable donations.
6. Combining the use of proceeds approach (green bond) with the Sustainability-linked bond combining use ofproceeds/investments features with KPIs in order to take advantage of both instruments features. In general, the SLB format gives
a country more flexibility to reach targets given that there are additional investments that a country will likely make to meet its
sustainable development initiatives beyond what an ESG labeled use of proceeds bond can fund. SLBs allow the Sovereign tosupport sectors of the economy that may lack adequate eligible assets and support regular government activity, while working toachieve their sustainability targets in a context of higher government accountability. Therefore, combining both format features
into one framework (i.e. clear and ambitious targets as well as high quality expenses and projects that help advance this target,
supported by robust evidence) could send a strong message to investors, offering complementary lenses of analysis as well as
higher transparency and more holistic alignment with a county’s sustainability ambition (e.g. Senegal has published a framework
combining UoPs and KPIs features).
7. We recommend issuers who have several targets and SLBs/SLLs outstanding to produce a consistent aggregated dashboard
including key information mapped to the different data specific to each SLB/SLL (e.g., observation date, Sustainability Performance
Target, reporting date, step-up date [start accruing], first stepped up coupon date [payment date]): Emission (or other ESG KPI) reduction scope Targeted reduction level Timeline (year – short to long-term).
 Progress achieved to date (e.g., % reached).
 Levers to advance the target.
 Note on the methodology/third party verification (e.g. UNDP assurance report or WB’s KPI’s ambition/progressassessment report as committed by Senegal or done by Uruguay)III)

SDG Bonds

Sustainable Development Goals (SDG): Use of proceeds should be clearly aligned with the Sustainable Development Goals, with
impact reporting referencing specific SDG targets or SDG indicators. ICMA has provided a high level mapping to the SDGs and the
UNDP has developed SDG Impact Standards for Bond Issuers.
a. Materiality and Performance Alignment: Use of Proceeds from SDG Labelled Sovereign bonds should be material to the
key risks faced by the country and critical for continued sustainable development.
b. The issuer is encouraged to set-up a strong system for expenditure evaluation and tag relevant budget expenditure to eachproject and respective SDG.
c. Post-issuance allocation reporting and impact reporting should provide an overview of programme implementation withquantitative targets (impact indicators) for eligible projects and clearly outline consistency with main SDG gaps.
Methodology supporting the indicators chosen and historical performance should also be provided.
d. Third party verification of impact metrics and SDG alignment is strongly recommended.
IV)

Background on PIMCO’s Sovereign Assessment

At PIMCO, when reviewing GSS-labeled bonds we conduct our own internal analysis, mapping the bonds across a spectrum based on
three criteria:
1. Strategic fit: Alignment of the issuer’s climate/environmental/social strategies and SDG goals with the bond’s objectives and useof proceeds.
2. Impact assessment: Evidence of significant positive outcomes compared to “business as usual” by the issuer.
3. Red flags and reporting: Screening for “red flags” and controversies and analysis of reporting and process6This internal review results in a bond-level score (including a framework score) and ESG recommendation regarding the suitability ofthese bonds for PIMCO’s ESG portfolios.
Some examples of good practices below:
IssuerUse of Proceeds

Details

The Green Bond framework includes six
eligible categories of projects clusteredaround four themes. With most of theproceeds dedicated to climate change
mitigation, followed by adaptation,
biodiversity and pollution reduction.

• Short look-back period (1y)• Explicit Cap on re-financing (50%)• Alignment with ICMA and EU taxonomy(partial disclosure of EU taxonomy alignment)• Comprehensive exclusions• Annual allocation and impact reports (boththird party verified)• Despite limited coverage of the impact
indicators, the chosen ones are relevant andsupported by applicable methodology• Allocation disclosure at the bond/project level

Majority of proceeds focused on social
categories such as Support forvulnerable groups and people invulnerable situations, access toaffordable housing, education andessential health services and support for
medium, small and micro-enterprises(MSMEs) and social programs to
alleviate and/ or prevent unemployment.
Framework also includes eight green
categories: (i)Green
Buildings,(ii)Renewable Energy,(iii)
Energy Efficiency (iv) Low Carbon
Transport,(v) Resilient and Efficient
Water and Wastewater Management(vi)Sustainable Management of Natural
Resources, Land Use and Marine
Protected Areas, (vii)Sustainable
Agriculture (viii)Sustainable Waste
Management.

• Clear link with the country’s sustainability
strategy and UoPs linked to key sustainable
development challenges facing the Sovereign.
• Alignment with ICMA’s standards• Commitment to annual allocation and impact
report to be third party verified• Framework clearly identifies low-income andvulnerable people through the use of
the Household Targeting System which
employs a series of socioeconomic,
geographical, and intervention-specific criteria
to identify people and households in situationsof vulnerability or exclusion.

Proceeds to support mortgage loans to
be offered at a preferential interest rateof 4.99%, through the Ecuadorian
financial system and a securitization
scheme.

• Governance framework includes IDB acting
as a guarantor for up to $300 million.
• Clear eligibility criteria with comprehensive
thresholds• Coherent with the country's strategic priorities
of sustainable development with clear positivesocial impact.

Green Bonds
FRANCE GOVT

Sustainability Bonds
PERU GOVT

Social Bonds
ECUADOR GOVTSDG Bonds
7

MEXICO GOVT

So far investments have been primarily
focused on social categories prioritizing
SDG 2, (Zero Hunger), 3 (Good Health
And Wellbeing), 4 (Quality Education), 8(Decent work and Economic growth)and 9 (Industry Innovation andInfrastructure) have been prioritized.
From 2023, the government has also
started to include expenditures to green
categories and specifically include SDG
6 (clean water and sanitation) SDG 7(affordable and clean energy), and SDG
13 (climate action).

• Development of innovative 'social gap index'
for targeting allocation which prioritizes
landlocked and vulnerable population groups,
including indigenous people and those in
extreme poverty.
• No refinancing• Strong system for expenditure evaluation andselection that is "observed" by the UNDP.
• The budget is mapped to each SDG andscreened and refined by the SHCP and theCommittee of Inclusive and Sustainable
Economy (CISE) to confirm that projects
available are eligible for allocation.
•Impact report is third party verified andincludes geographic details.
• Framework is aligned with SDGs, SBP and
GBP

EXAMPLES PROVIDED FOR ILLUSTRATIVE PURPOSES ONLY

Contact: ESG_Analyst_Inquiries@pimco.com

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IMPORTANT INFORMATION
Please note that these best practices contain the opinions of the manager as of the date noted, and may not have been updated to reflect real time market developments. All
opinions are subject to change without notice.
Past performance is not a guarantee or reliable indicator of future results.
Environmental (“E”) factors can include matters such as climate change, pollution, waste, and how an issuer protects and/or conserves natural resources. Social (“S”) factors can
include how an issuer manages its relationships with individuals, such as its employees, unitholders, customers and its community. Governance (“G”) factors can include how anissuer operates, such as its leadership, pay and incentive structures, internal controls, and the rights of equity and debt holders.
PIMCO is committed to the integration of Environmental, Social and Governance ("ESG") factors into our broad research process and engaging with issuers on sustainability factors
and our climate change investment analysis. At PIMCO, we define ESG integration as the consistent consideration of material ESG factors into our investment research processwith the goal of enhancing our clients’ risk-adjusted returns. Relevant factors may include, but are not limited to: climate change risks, resource efficiency, natural capital, humancapital management, human rights, regulatory risks, and reputation risk at an issuer. Further information is available in PIMCO’s Sustainable Investment Policy Statement.
With respect to comingled funds with sustainability strategies and guidelines (“funds that follow sustainability strategies and guidelines”), we have built on PIMCO’s over 50-year
core investment processes, while actively incorporating sustainability principles. Through these guiding principles—excluding issuers fundamentally misaligned with sustainability
factors, evaluating issuers using proprietary and independent ESG scoring (in addition to externally sourced and internally developed criteria), and engaging with issuers on ESGrelated topics with the objective of improving investment outcomes - funds that follow sustainability strategies and guidelines seek to deliver attractive returns while also pursing toprovide a vehicle through which investors can meet their sustainability preferences. Please see each fund that follows sustainability strategies and guidelines prospectus for moredetailed information related to its investment objectives, investment strategies and approach to ESG.
There is no assurance that the socially responsible investing strategy and techniques employed will be successful.
A word about risk: All investments contain risk and may lose value. Investing in the bond market is subject to risks, including market, interest rate, issuer, credit, inflation risk,
and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates. Bonds and bond strategies with longer durations tend to be more sensitiveand volatile than those with shorter durations; bond prices generally fall as interest rates rise, and low interest rate environments increase this risk. Reductions in bond counterparty
capacity may contribute to decreased market liquidity and increased price volatility. Bond investments may be worth more or less than the original cost when redeemed. Sovereign
securities are generally backed by the issuing government. Obligations of U.S. government agencies and authorities are supported by varying degrees, but are generally notbacked by the full faith of the U.S. government. Portfolios that invest in such securities are not guaranteed and will fluctuate in value. Investing in foreign-denominated and/or domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. ESG investing isqualitative and subjective by nature, and there is no guarantee that the factors utilized by PIMCO or any judgment exercised by PIMCO will reflect the opinions of any particularinvestor, and the factors utilized by PIMCO may differ from the factors that any particular investor considers relevant in evaluating an issuer’s ESG practices. In evaluating an issuer,
PIMCO is dependent upon information and data obtained through voluntary or third-party reporting that may be incomplete, inaccurate or unavailable, or present conflicting
information and data with respect to an issuer, which in each case could cause PIMCO to incorrectly assess an issuer’s business practices with respect to its ESG practices.
Socially responsible norms differ by region, and an issuer’s ESG practices or PIMCO’s assessment of an issuer’s ESG practices may change over time. There is no standardized
industry definition or certification for certain ESG categories, for example “green bonds”; as such, the inclusion of securities in these statistics involves PIMCO’s subjectivity anddiscretion. There is no assurance that the ESG investing strategy or techniques employed will be successful. Past performance is not a guarantee or reliable indicator of future
results.
ESG-labeled instruments are defined as green, social, and sustainable bonds and sustainability-linked bonds. Green Bonds are those issues with proceeds specificallyearmarked to be used for climate and environmental projects. Social Bonds are use-of-proceeds bonds earmarked to finance new and existing projects or activities with positivesocial impacts. Sustainability Bonds are use-of-proceeds bonds earmarked to finance new and existing projects or activities with positive environmental and social impacts.
Sustainability-Linked Bonds (SLBs) are bonds that include sustainability-linked covenants, as explained by the issuer through use of a framework and/or legal documentation.
The issuers referenced are examples of issuers PIMCO considers to be well known and that may fall into the stated sectors. References to specific issuers are not intended andshould not be interpreted as recommendations to purchase, sell or hold securities of those issuers. PIMCO products and strategies may or may not include the securities of theissuers referenced and, if such securities are included, no representation is being made that such securities will continue to be included.
This material contains the current opinions of the manager and such opinions are subject to change without notice. This material is distributed for informational purposes only andshould not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained fromsources believed to be reliable, but not guaranteed.
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Floor, Two International Finance Centre, No. 8 Finance Street, Central, Hong Kong) is licensed by the Securities and Futures Commission for Types 1, 4 and 9 regulated activities
under the Securities and Futures Ordinance. PIMCO Asia Limited is registered as a cross-border discretionary investment manager with the Financial Supervisory Commission of9

Korea (Registration No. 08-02-307). The asset management services and investment products are not available to persons where provision of such services and products isunauthorised. | PIMCO Investment Management (Shanghai) Limited. Office address: Suite 7204, Shanghai Tower, 479 Lujiazui Ring Road, Pudong, Shanghai 200120, China(Unified social credit code: 91310115MA1K41MU72) is registered with Asset Management Association of China as Private Fund Manager (Registration No. P1071502, Type: Other).
| PIMCO Australia Pty Ltd ABN 54 084 280 508, AFSL 246862. This publication has been prepared without taking into account the objectives, financial situation or needs of investors.
Before making an investment decision, investors should obtain professional advice and consider whether the information contained herein is appropriate having regard to theirobjectives, financial situation and needs. To the extent it involves Pacific Investment Management Co LLC (PIMCO LLC) providing financial services to wholesale clients, PIMCO LLC
is exempt from the requirement to hold an Australian financial services licence in respect of financial services provided to wholesale clients in Australia. PIMCO LLC is regulated by
the Securities and Exchange Commission under US laws, which differ from Australian laws. | PIMCO Japan Ltd, Financial Instruments Business Registration Number is Director of
Kanto Local Finance Bureau (Financial Instruments Firm) No. 382. PIMCO Japan Ltd is a member of Japan Investment Advisers Association, The Investment Trusts Association,
Japan and Type II Financial Instruments Firms Association. All investments contain risk. There is no guarantee that the principal amount of the investment will be preserved, or that acertain return will be realized; the investment could suffer a loss. All profits and losses incur to the investor. The amounts, maximum amounts and calculation methodologies of eachtype of fee and expense and their total amounts will vary depending on the investment strategy, the status of investment performance, period of management and outstanding balanceof assets and thus such fees and expenses cannot be set forth herein. | PIMCO Taiwan Limited is an independently operated and managed company. The reference number ofbusiness license of the company approved by the competent authority is (112) Jin Guan Tou Gu Xin Zi No. 015 . The registered address of the company is 40F., No.68, Sec. 5,
Zhongxiao East Rd., Xinyi District, Taipei City 110, Taiwan (R.O.C.), and the telephone number is +886 2 8729-5500. | Note to Readers in Colombia: This document is provided
through the representative office of Pacific Investment Management Company LLC located at Carrera 7 No. 71-52 TB Piso 9, Bogota D.C. (Promoción y oferta de los negocios yservicios del mercado de valores por parte de Pacific Investment Management Company LLC, representada en Colombia.). Note to Readers in Brazil: PIMCO Latin America
Administradora de Carteiras Ltda.Av. Brg. Faria Lima, 3477 Itaim Bibi, São Paulo - SP 04538-132 Brazil. Note to Readers in Argentina: This document may be provided throughthe representative office of PIMCO Global Advisors LLC AVENIDA CORRIENTES, 299, Buenos Aires, Argentina. | No part of this publication may be reproduced in any form, or
referred to in any other publication, without express written permission. PIMCO is a trademark of Allianz Asset Management of America LLC in the United States and throughout theworld. ©2024, PIMCO.
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