Green Bond Fact Sheet

Instituto de Crédito Oficial

Date: 23-Apr-2019

Issue date: 09-04-2019 Maturity date: 31-01-2024 Tenor: 5Issuer Name

Instituto de Crédito
OficialAmount Issued

EUR500m (USD560m)

Country of risk

Spain

CBI Database

Included

Issuer Type1

Government-backedentity

Bond 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 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
☐ Flood protection☐ 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 has committed to annual reporting of both allocation and impact until full
allocation of the bond. Allocation reporting will be provided at the category level, while
impact reporting will include relevant quantitative metrics.

Company information

The Instituto de Crédito Oficial is a state-owned bank under the jurisdiction of Spain’s State
Secretariat for Economy and Enterprise Support (Ministry of Economy and Business). ICO
lends to Spanish enterprises, both directly and through third parties, to promote growthand development with a focus on activities of social, cultural, or environmental value.

Firsts, records andcertifications

Second government-backed Spanish issuer ever (following ADIF Alta Velocidad, which has
issued three bonds until now), and the first financial government-backed entity

Proceeds description

Climate Bonds view

Underwriters
Deal comments
Credit Rating
Pricing summary
Investors summary

ICO will use the proceeds to finance or refinance, in whole or in part, existing and future
projects that provide environmental benefits and promote sustainable development. The
Framework defines eligibility criteria in six areas:
1. Renewable energy
2. Energy Efficiency
3. Clean transportation
4. Pollution prevention and control
5. Environmentally sustainable management of living natural resources and land use
6. Sustainable water and wastewater management
ICO’s bond marks the sixth green bond from a Spanish issuer in 2019, indicating that thecountry’s green bond market is picking up (11 bonds issued in 2018) – ICO had alreadyissued social bonds. The deal is aligned to the intention of the Spanish Government toincrease financing for projects with an environmental focus, as it seeks to make an“ecological transition” and become carbon neutral by 2050. The Spanish State Treasury has
been studying the possibility of issuing green bonds, but this has not happened yet; itremains unclear if the government aims to finance environmental projects mainly via
government-backed entities such as ICO, or via sovereign green bonds, or both. We willkeep an eye out for further Spanish public sector issuance.
BNP, CaCIB, ING, Santander1Issuer categories: ABS, development bank, financial corporate, government-backed entity, loan, local government, non-financial
corporate, sovereign