Green Bond Fact Sheet

OP Corporate Bank

Date: 11-Mar-2019

Issue date: 26-02-2019 Maturity date: 26-02-2024 Tenor: 5Issuer Name

OP Corporate Bank

Amount Issued

EUR500m (USD570m)

Country of riskFinland

CBI Database

Included

Issuer Type1

Financial corporate

Bond TypeSenior 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
☐ 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

The issuer states that it will publish an annual Green Bond Report until full allocation ofproceeds. The report will include, at a minimum, the (aggregated) amount of net proceeds
allocated to each eligible sector as well as a description of the types of business and projects
financed. It will also disclose the origination timeframe and maturity profile of the loans bysector and outline the balance of any unallocated proceeds. Indicative performanceindicators include the following:• kWh of power generated and tCO2e avoided (renewable energy)• Energy saved annually (kWh/year) (energy efficiency)• Number of buildings that received a green building certification, reduction in energyuse (kWh/year) (green buildings)• Amount of waste reduced/avoided/recycled annually, and annual amount of water
purified (pollution prevention)• Land area of sustainably certified forests, organic agricultural land financed in m²and land area transformed into eco-friendly land use (sustainable land use)
• Number of public trams/ trains/ metros financed and location, capacity createdthrough financing and number of cars avoided (clean transportation)

Company information

OP Corporate Bank plc provides non-life insurance and corporate and investment banking
services in Finland. OP Corporate Bank also offers asset management services forinstitutions. The company is one of the largest corporate lenders in the country.

Firsts, records andcertificationsFirst issuance by a financial corporate in Finland

Proceeds description

The proceeds can be used to finance several sectors. Eligible energy categories include
offshore and onshore wind, solar and small-scale Nordic hydro (<20MW). Refurbishment
and/or refinancing of large hydropower plants (>20MW) is permitted they do not decreasewater reservoirs and comply with local regulations. Waste-to-energy from forestry byproducts or other sustainable biofuels is eligible. Energy efficiency covers for example
improvements in transmission and distribution infrastructure, smart grids or energy
storage. Fossil-fuel technologies are excluded. All efficiency improvements must be at least
10 % or approved by the OP Green Bond Committee. Green buildings (commercial orresidential) must have obtained LEED Gold or higher; BREEAM Very Good or better; theNordic Swan Ecolabel (Svanen) certification; or another recognised certification pending
approval from the Committee. New commercial/public buildings with energy label B or
higher (Finnish classification) are eligible. Energy performance improvements may qualify ifthey achieve a minimum 15% improvement in line with the relevant national building code.
Pollution prevention includes reduction of air and greenhouse gas emissions, soil
remediation, waste prevention, reduction and recycling. Sustainable water and wastewater
management is also included in this category, encompassing also sustainable urban
drainage systems (SUDs). Interestingly, OP also includes “eco-efficient and/or circular
economy adapted products, production technologies and processes” as a specific subcategory.

Sustainable forestry projects must be certified by FSC or PEFC. Eco-friendly land conversion
projects and sustainable agriculture (complying with EU and national regulations) areeligible. Clean transportation covers electric and hybrid vehicles/infrastructure, mobility asa service (MaaS), as well as expansion and improvements of train, tram and metro
networks and bicycle schemes. Fossil fuel-based infrastructure is excluded.

Climate Bonds view

Underwriters

To date we have seen limited green bond issuance from Finland despite a healthy demandfor Nordic green debt. The participation of more than 100 investors in OP’s issue attests tothe fact that the bond is a good addition to Nordic issuance. It is commendable that this isalso the first green bond by a financial corporate, and we look forward to seeing other
Finnish financial institutions follow suit.
OP’s green bond framework is robust and covers a broad set of sectors. The issuer’scommitment to detailed reporting (including several environmental impact indicators foreach eligible sector) is a positive sign. We expect similar disclosures from other Nordic
issuers going forward.
Crédit Agricole Corporate and Investment Bank, HSBC Bank plc and OP Corporate Bank plc

Deal comments
Credit Rating
Pricing summary
Investors summary

1

Moody’s Aa3, S&P AA-, Bloomberg Composite AABook closed at EUR2.1bn, 4x oversubscribed
The issue involved over 100 investors

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