Green Bond Fact Sheet

Banco Santander

Date: 15/10/2019

Issue date: 04-10-2019 Maturity date: 04-10-2026 Tenor: 7
Issuer Name

Banco Santander

Amount Issued

EUR1bn/USD1.1bn

Country of riskSpainCBI Database

Included

Issuer Type1

Financial corporate

Bond TypeSenior preferredGreen Bond Framework

Link to Framework

Second party opinion

Vigeo Eiris

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
ReportingSantander will report on the use of proceeds and environmental impacts. Allocations will bereported by project/asset, giving details about each one, and the impacts will focus on annual
CO2 emissions reduced/avoided. The frequency of reporting is not clear but seems to beannual.

Company information

Banco Santander is one of the world’s largest banks, with operations covering Europe, theUS and Latin America and several business units, such as retail banking, commercial
banking, and corporate & investment banking. It was recently ranked the most sustainablebank in the world in the Dow Jones Sustainability Index and has multiple responsiblebanking targets, including the commitment to provide more than EUR120bn in green
finance globally by 2025.

Firsts, records andcertificationsFirst green bond from a Spanish financial corporate financing renewable energy exclusively(other deals were by BBVA and they also financed other categories). First senior preferredgreen bond from Spain (from those we have been able to confirm the bond type).

Proceeds description

Up to half of the proceeds will refinance existing renewable wind and solar energy projects,
with the rest financing new projects in the next five years. These will include onshore andoffshore wind as well as solar PV and CSP. The eligible projects will include the electricity
generation technologies as described above, and also any ancillary infrastructure, such astransmission lines, substations, etc. Banco Santander’s total portfolio of renewable energy
project finance at the end of last year totalled EUR9.8bn, approximately half of the bank’s
total project finance portfolio. The renewable projects are spread over 360 transactions, ofwhich 170 are wind and 145 solar. 65% of the financing is in Europe and the rest in theAmericas.

Climate Bonds view

This is an important deal given the importance of large, global financial corporates indriving funding for green projects and their ability to put sustainable finance on the global
agenda as well as increase its awareness among the general public.
Santander has a significant portfolio of renewable energy project finance which would
clearly be eligible for green bond financing. We therefore expect further issuances, notleast due to Santander’s ambitious sustainable/green finance plans, and hope that thisexpands to other projects, including related to new infrastructure given the bank’s strong
presence in Latin America.
Santander, Mediobanca, Natixis, SocGen, Unicredit

Underwriters
Deal comments
Credit Rating
Pricing summary

The bank was able to tighten the spread guidance to midswaps plus 0.65%

Investors summary

5.5x oversubscribed with a large number of investors

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