Green Bond Fact Sheet

Sparebank 1 SMN

Date: 19/09/2019

Issue date: 11-09-2019 Maturity date: 11-09-2026 Tenor:7
Issuer Name

Sparebank 1 SMN

Amount Issued

EUR500m/USD552m

Country of risk

NorwayCBI Database

Included

Issuer Type1

Financial corporate

Bond TypeSenior unsecured

Green Bond Framework

Link to Green BondFramework

Second party opinion

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

Sustainalytics

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
ReportingIssuer information

Sparebank 1 SMN commits to publish an annual impact and proceeds report until the funds
are fully allocated. This includes KPIs such as energy consumption and key impact indicators
measured and reported by the certification schemes. The revenue that comes from certified
products, services and processes and the corresponding proportion of eligible loans and theamount of unallocated proceeds will be disclosed as well.
Founded in 1823 and headquartered in Trondheim, Sparebank 1 SMN is a Norwegiansavings bank. It provides commercial banking services to industry and private households
and offers deposits, loans, money transfers, cash management, foreign exchange andfinancial advisory services. Sparebank 1 SMN employs approximately 1,500 employees.

Firsts, records andcertifications
Proceeds description

The proceeds will go towards green buildings and eco-efficient and/ or circular economy
adapted products, production technologies and processes. Buildings are required to meet
one or more of the following criteria:
1. They belong to the top 15% in terms of energy performance within their building
category in Norway.
2. LEED “Gold”, BREEAM or BREEAM-NOR “Excellent” or equivalent levels of certification,or the Nordic Swan Ecolabel.
3. Energy efficiency improvement by at least 30%.

Climate Bonds view

We are pleased to see another financial corporation entering the green bond market inNorway. So far financial corporates have been mainly focussing on low-carbon buildings
and therefore Sparebank 1 SMN is the first bank to finance circular economy projects withthe use of proceeds.
Sparebank 1 SMN has identified a number of certification schemes required for project toqualify for circular economy financing. These include schemes such as Nordic Swan
Ecolabel, Eco-Lighthouse Label, the Marine Stewardship Council (MSC), the Aquaculture
Stewardship Council (ASC) and the GLOBAL GAP – The Worldwide Standard for Good
Agricultural Practices. While it is not clear what specific projects will be financed, we havetaken the view that the use of certification schemes to screen projects is a good approach.
It is advisable for issuers to provide more information on potential types of projects. Wewill monitor issuer reporting to confirm that the financed projects align to the Climate
Bonds Taxonomy.

Underwriters

BNP, Commerzbank, ING

Deal comments
Credit Rating

A1 (Fitch)
A- (Moody’s)Pricing summary
Investors summary

1••
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Interest spread: ms+65bps
Yield: 0.239 %Coupon: 0.1250%
Price: 99.210%

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