Green Bond Fact Sheet

ESB

Date: 18/06/2019

Issue date: 11-06-2019 Maturity date: 11-06-2030 Tenor: 11Issuer Name

ESB

Amount Issued

EUR500 (USD566m)

Country of risk

Ireland

CBI Database

Included

Issuer Type1

Government-backed
entityBond Type

Senior unsecured

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☐ District heating☒ Electricity grid

☐ Energy storage☒ Energy performance☒ Infrastructure☐ Industry: components☐ Adaptation & resilience☒ Buildings☒ Certified Buildings☐ HVAC systems☒ Energyperformance☐ 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☐ Wastewatertreatment☐ Water storage☐ Storm water mgmt
☐ Flood protection☐ Desalinisation plants☐ Erosion control☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Waste management☐ Recycling☐ Waste prevention☐ Pollution control☐ Landfill, energy capture☐ Energy performance☐ Infrastructure☐ Waste to energy☐ 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

ESB commits to producing, at least annually, an allocation and impact report either as astand-alone dedicated report or integrated into ESB’s existing annual sustainability report,
which will be made available via the company’s website.

Company information

ESB is an integrated energy company that engages in the production, transmission,
distribution and supply of electricity in the Republic of Ireland, Northern Ireland and otherparts of the UK. The company produces energy through different sources, including bothfossil fuel sources and renewables. Moreover, ESB has expanded its business activities tonew areas, including the installation of electric vehicle public charging points and providing
telecommunication services for mobile and wireless operators. The Government of Irelandowns 95% of ESB.

Firsts, records andcertificationsFirst issuance from Ireland in 2019, as well as the first ever from an Irish governmentbacked entity. It is the first bond from Ireland to specifically target electric vehicles andtheir surrounding infrastructure. It is also the first benchmark-sized deal from Ireland,excluding last year’s sovereign.

Proceeds description

To finance/refinance, in whole or in part, existing and future projects that will provide a
positive environmental impact, such as mitigating and reducing GHG emissions andgenerating renewable energy. The Framework defines eligibility criteria in four areas:
1. Renewable Energy – wind and solar projects, as well as infrastructure (e.g. transmission)
to connect new renewable sources to the grid
2. Energy Efficiency – mainly in buildings (solutions including smart metering and othertechnologies designed to manage/reduce demand, as well as projects designed toimprove the energy efficiency of ESB’s commercial buildings), and some in energy (upgradeof power transmission infrastructure to improve efficiency/reduce transmission losses)
3. Clean Transportation – electric vehicles and infrastructure to increase their penetration
4. Green Buildings - certified buildings

Climate Bonds viewAs part of the EU, Ireland has several targets related to renewable energy, including 40% ofproduction, 12% of heat production and 10% clean transportation by 2020. In April 2019, it
also increased its target for renewable electricity by 2030 from 55% to 70% (it is currently
close to 30%). ESB’s other market (the UK) has also set emissions target for the coming
decades. We therefore view ESB’s green investments favourably and believe they will help
Ireland and the UK reach their targets.
This is also only the third green bond to be issued in Ireland, and the first from agovernment-backed entity. We hope this issuance will spur other Irish state-owned
enterprises, as well as other issuer types, to raise funds via green bonds.

Underwriters
Deal comments
Credit Rating

BBVA, Danske Bank, JPM, SocGen

1Pricing summary

1.125% coupon

Investors summary

Heavily over-subscribed. Purchased primarily by European institutional investors, withorders received of over EUR4bn. This enabled ESB to price the bond at 1.125%, its lowest
ever coupon for a senior bond, with strong participation of socially responsible investors
from different countries.

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