Green Bond Fact Sheet

Svenska Handelsbanken

Date: 27-Jun-2018

Issue date: 03-Jul-2018 Maturity date: 03-Jul-2023 Tenor: 5Issuer Name

Svenska
Handelsbanken

Amount Issued

EUR500m(USD583m)

Country of risk

SwedenCBI Database

Included

Issuer Type1

Financial Corporate

Bond TypeSenior unsecured

Green Bond Framework

Link to Framework

Second party opinion

CICERO

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☒ Waste to energy☐ 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
☐ 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☐ Industry: components☐ Adaptation & resilience☒ Land use & agriculture☐ Afforestation/parks☒ FSC/PEFC Forestry☐ FSC Cellulose &paper☐ Land remediation☐ Energy/water efficiency☐ Sustainable agriculture☐ Adaptation & resilience☐ Other☐ Adaptation &resilience☐ ICT☐ Industry: process

Issue details
ReportingCompany information

Handelsbanken will publish an annual report on its website disclosing allocation ofproceeds and performance indicators. A list of indicative key performance indicators
can be found in the “Reporting” section of the Green Bond Framework. An external
auditor or similar party will be appointed by the issuer to ensure that an amountequivalent to net proceeds has been allocated to eligible green projects/assets.
Handelsbanken is one of the major publicly traded Swedish banks that provides
personal and corporate banking, financing, mortgage loans, investment banking,and private banking. The bank is headquartered in Stockholm.

Firsts, records andcertifications
Proceeds description

Climate Bonds view

Proceeds can be allocated to renewable energy, clean transport, waste and watermanagement, green buildings or sustainable forestry. Green buildings can qualify ifcertified at Miljöbyggna Silver, BREEAM-SE Very Good, BREEAM-in-use Very Good,LEED Gold, Svaven or better, or if they have 15% lower energy use than required by
the applicable national building code. The eligibility requirement for large-scaleforestry (>1500ha) is FSC or PEFC certification, while small-scale forestry (501500ha) needs to be compliant with the Swedish Forestry Act.
For forestry related assets, we take into account the sustainability of both smalland large holdings. The Climate Bonds Forestry Criteria – still in public consultation– acknowledge that smallholders may not be able afford an external certificationand set out specific requirements to demonstrate compliance with the mitigationand resilience components of the Criteria.
The Forestry Stewardship Council (FSC) definition of small and low intensity
managed forests (SLIMF) in Sweden is holdings of up to 1000 hectares. The issuer’s
definition of small forestry holder exceeds this threshold. However, the Swedish
Forestry Act provides us with sufficient assurance of the sustainable managementof the holdings. In the future, we would like to see eligibility criteria forsmallholders without FSC/PEFC certifications including specific requirements on
soil health, water management, fire management, riparian areas protection,
biodiversity management, species selection and chemical use, as set out in thepublic consultation document of the Forestry Criteria.

Underwriters

HSBC, Bank of America Merrill Lynch, Handelsbanken Capital Markets

Deal comments
Credit Rating

1

Pricing summary

Final pricing of mid-swaps plus 23 basis points (bps) represented a premium of 3bps. According to the bank, the bond attracted the lowest new issue premium inthe low beta Euro preferred senior market since the onset of volatility in March.
(source)

Investors summary

The deal attracted about 100 investors from across Europe, with the largest
proportion from Germany and Austria (29%), followed by the Nordics (22%),
France and Benelux (both 16%) and the UK (9%).

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