Green Bond Fact Sheet
Schertz-Seguin Local Government Corporation
Issue date: 15-Nov-2018 Maturity date: 01-Feb-2041 Tenor: 22.2

Date: 19-Nov-2018

Issuer Name

Schertz-Seguin Local
Government
Corporation

Amount Issued

USD19mCountry of risk

USA

CBI Database

IncludedIssuer Type1

Local government

Bond TypeUS MUNI

Green Bond Framework

N/A

Second party opinion

N/A

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 emissionvehicles☐ 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
☐ Desalinisation plants☐ Erosion control☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience

Use of Proceeds☐ Waste management☐ Recycling☐ Waste prevention☐ Pollution control☐ Landfill, energy capture☐ Energy performance☐ Infrastructure☐ Waste to energy☐ Industry: components☐ Adaptation & resilience☐ 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

The issuer commits to report on an annual basis on its website on the allocation ofproceeds and impact of the financed projects.

Company information

The corporation set up by Schertz-Seguin works to develop and operate thewholesale water supply system of this two major population centres in Guadalupe
County, Texas. The Corporation holds permits to produce water from twelve wells
up to an annual combined total of 19,362 (with the latest addition of two dwells
production rose to 12,910 acre feet)

Firsts, records andcertificationsFirst Texas issuer to come to market in 2018 with a US Muni green bond.

Proceeds description

The deal will finance projects related to the development and operation of thewater supply system of the cities of Seguin and Schertz, including the constructionof a cross-country pipeline, treatment facilities, pumping stations, water storage
and gathering lines from the well-field.

Climate Bonds view

Water is the largest sector financed by US Muni green bonds, with over half ofproceeds from US municipal deals being allocated to water-related projects in2018, or USD1.7bn. What is notable about this deal is that it involves intergovernmental cooperation. The cities of Schertz and Seguin recognized theinterconnectedness of the issues at stake related to their water system andidentified a common solution. We hope to see more US municipal agencies using
green bonds as a means to cooperate with other agencies in obtaining financing forgreen infrastructure projects.

Underwriters
Deal comments
Credit Rating

AA (S&P)

Pricing summary
Investors summary

1Issuer categories: ABS, development bank, financial corporate, government-backed entity, loan, local government,
non-financial corporate, sovereign