Green Bond Fact Sheet

Vattenfall AB

Date: 08/07/2019

Issue date: 24-06-2019 Maturity date: 24-06-2026 Tenor: 7
Issuer Name

Vattenfall AB

Amount Issued

EUR500m/USD570m

Country of risk

SwedenCBI Database

Included

Issuer Type1

Non-financial
corporate

Bond Type

Senior 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☐ 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
Reporting

Vattenfall intends to report on allocation of proceeds as well as impact indicators. The former
will include any substantial changes in allocation to the Eligible Green Project Portfolio atleast at the category level. Where possible, the company will provide:• A list of projects and their expected impact• The amounts per category invested• A qualitative description of key projects• The proportion of new and existing projects, divested assets, and refurbishments• The balance of unallocated cash and/or cash equivalents.
On the impact reporting side, a list of potential impact reporting indicators is included in theAppendix of the Green Bond Framework.
The investor report will be produced annually and will be publicly available.

Company information

Vattenfall is a Swedish power company that produces electricity and heat. The company iswholly state-owned. It operates in Sweden, Denmark, Finland, Germany, the Netherlands,
and the United Kingdom. The company employs approximately 20,000 people and madeSEK12bn (USD1.2bn) profit in 2018.

Firsts, records andcertifications

Vattenfall is the first Swedish energy utility to enter the green bond market.

Proceeds description

The proceeds of the bond can be spent on eligible projects in the following categories:a) Renewable energy and related infrastructure (wind, solar, biomass, geothermal andhydrogen)b) Energy efficiency (hydro power, smart grids/meters, fossil free district heating andcooling, and energy recovery)c) Electrification of transport and heating (EV infrastructure, power to heat)d) Industry projects (activities that enable the transformation to fossil-free production,such as the HYBRIT3 project)
Nuclear and fossil fuel-based production projects are explicitly excluded.

Climate Bonds view

Underwriters
Deal comments
Credit RatingThis benchmark-sized bond is the largest to date from the Nordic utilities sector. We
welcome Vattenfall joining its Norwegian and Danish colleagues Eidsiva Energi, Sogn ofFjordane Energi and European Energy. The issuance total from these companies is 860m
USD equivalent. We hope Vattenfall’s green bond will stimulate further issuance from itspeers in the region.
Citi, Deutsche Bank, Nordea

Pricing summary••••

Interest spread: ms+55bps
Yield: 0.553%
Coupon: 0.500%
Price: 99.637%

Investors summary

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