Green Bond Fact Sheet

Kingdom of Belgium

Date: 05-Mar-2018

Issue date: 05-Mar-2018 Maturity date: 22-Apr-2033 Tenor: 15.1
Issuer Name

Kingdom of Belgium

Amount Issued

EUR4.5bn (USD5.5bn)

Country of risk

Belgium

CBI Database

Included

Issuer Type1

Sovereign

Bond TypeGreen OLO

Green Bond Framework

Link to Framework

Second party opinion

Sustainalytics

Certification Standard

Not certified

Assurance report

N/A

Certification Verifier

N/AGreen bond rating

N/A☒ Energy☒ Solar☒ Onshore wind
☒ Offshore wind
☐ Geothermal☒ Hydro☐ Tidal☐ Biofuels☐ Bioenergy☐ Waste to energy☐ District heating☒ Electricity grid

☒ Energy storage☒ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☒ Buildings☐ Certified Buildings☒ HVAC systems☒ Energy performance☐ Water performance☐ Energy storage/meters☐ Other energy related☐ Industry: components☐ Adaptation & resilience☒ Transport☒ Electric vehicles☐ Low emission vehicles☐ Bus rapid transit☐ Passenger trains☒ Urban rail

☐ Freight rolling stock☒ Coach / public bus☐ Bicycle infrastructure☒ Energy performance☐ Transport logistics☒ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Water & wastewater☐ Water distribution☐ Water treatment☐ Wastewater treatment☐ Water storage☐ Storm water mgmt
☐ Desalinisation plants☐ Erosion control☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☒ Waste management☒ Recycling☒ Waste prevention☐ Pollution control☐ Landfill, energy capture☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience

Use of Proceeds☒ Land use &agriculture☐ Afforestation/parks☐ FSC Forestry☐ FSC Cellulose & paper☐ Land remediation☐ Energy/water efficiency☒ Sustainable agriculture☐ Adaptation & resilience☒ Other☒ Adaptation &resilience☐ ICT☐ Industry: process

Issue details
Reporting

Annual reporting on proceed allocation will be available on the Belgian Debt Agency’s
website.

Company information
Firsts, records andcertifications

Second largest sovereign GB. Second largest GB after French EUR9.7bn green OAT.

Proceeds description

The proceeds will finance primarily clean transport (85%) with EUR2.2bn to beinvested in domestic passenger trains for the benefit of SNCB and railway projects,
according to the Belgian Debt Office.

Climate Bonds view

Underwriters

Eligible categories under the Green OLO Framework also include living resources andland use, renewable energy, circular economy and energy efficiency, as well as related
federal state expenditures that can contribute to meeting Belgium’s climate policy
objectives. In its SPO, Sustainalytics recognises the importance of government
incentives in driving emission reductions in the public and private sectors, especiallythrough energy efficiency improvements, and expresses a positive view regarding
such expenditures.
We agree with Sustainalytics’ view that it makes sense to fund supportive government
incentives and would hope to see evidence of their impact on GHG reductions infuture reporting. For energy efficiency renovations in buildings, we note that
communicating threshold levels in the framework would contribute to its
transparency and clarity, albeit this is not so crucial for now given the focus ontransport so far.
Barclays, BNP Paribas Fortis, Credit Agricole, ING and JPM

Deal comments
Credit Rating
Pricing summary

Aa3 (Moody’s) stable/ AA (S&P)/ AA-(Fitch) stable
Books opened in the morning of Monday, February 26 th and closed at 12.45pm Brussels time.
Total bids stood at more than EUR12.7bn (including EUR950m of Joint Lead Managersinterests) and EUR4.5bn was allocated. The EUR4.5bn size had been announced at theroadshow as the maximum possible issuance size, given the identified covered pool of Green
Eligible Expenditures for the Belgian Federal State.

Coupon: 1.250%
Spread to benchmark: m/s-14bps
Re-offer price / Re-offer yield: 99.466% / 1.289%
Investors summary

With more than 150 accounts participating, the orderbook met with high quality demand bothfrom the SRI and conventional world acknowledging a successful combination of both thefeatures of the OLO and the features of the Green market.

••1

By Investor types, Fund Managers represented 33% of the transaction followed byCentral Banks and Official Institutions (26%) and Pension Funds (16%)
By geographical distribution, Eurozone represented the bulk of demand (53%),
followed by Europe (non-Euro zone) –23% and Asia (12%)

Issuer categories: ABS, development bank, financial corporate, government-backed, loan, local government, non-financialcorporate, sovereign