Green Bond Fact Sheet

Tucson Electric Power

Date: 28/08/2020

Issue date: 10-08-2020 Maturity date: 01-08-2030 Tenor: 10Issuer name

Tucson Electric Power

Amount issued

USD300m

Country of risk

USA

CBI Database

Included

Issuer type1

Non-Financial
Corporate

Bond typeSr Unsecured

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 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
ReportingCompany information

Within twelve months of the issuance, the issuer intends to provide a notice on their website
regarding the cost of the project, including an assertion by management that an amount inexcess of the net proceeds was invested in the eligible project and relevant impact metrics.
Tucson Electric Power was incorporated in the State of Arizona in 1963 and is a regulated
electric utility company serving approximately 427,000 retail customers. It is a is a wholly
owned subsidiary of UNS Energy Corporation. The service territory covers 1,155 square
miles and includes a population of over one million people in Pima County, as well as partsof Cochise County. Business operations include generating, transmitting, and distributing
electricity to its retail customers. In addition to retail sales, the company sells electricity,transmission, and ancillary services to other utilities, municipalities, and energy marketingcompanies on a wholesale basis.

Firsts, records andcertifications
Proceeds description

The net proceeds will finance the costs of the Oso Grande wind farm, a 250 MW nominal
capacity wind-powered electric generation facility with an estimated cost of USD422m. Thefacility is under construction in south-eastern New Mexico. The project is expected to becompleted for operation by the end of 2020.

Climate Bonds view

New Mexico’s energy consumption mainly comes from natural gas and coal. A wind power
plant will add more renewable energy to this mix.
MUFG, Scotia, US Bancorp, TS

Underwriters
Deal comments
Credit rating

A- (S&P)
A3 (Moody’s)

Pricing summary•••Yield: 1.544%
Coupon: 1.500%
Price: 99.595%

Investors summary

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