Green Bond Fact Sheet

Stora Enso

Date: 19-Feb-2019

Issue date: 20-Feb-2019 Maturity date: 20-Feb-2024 Tenor: 5Issuer Name

Stora Enso

Amount Issued

SEK6bn (USD604m)

Country of risk

Finland

CBI Database

Included

Issuer Type1

Non-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 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☒ 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/PEFC Forestry☐ FSC Cellulose &paper☐ Land remediation☐ Energy/water efficiency☐ Sustainable agriculture☐ Adaptation & resilience☒ Other☐ Adaptation &resilience☐ ICT☒ Industry: process

Issue details
Reporting

The issuer intends to report allocation proceeds and impacts on an annual basis. Impact
indicators include CO2 avoided and percentage of land certified by FSC and PEFC.

Company information

Stora Enso Oyj (Stora Enso) is a Finnish forest product company producing paper andpackaging solutions as well as pulp and solid wood products. Stora Enso’s operations areconcentrated in Europe, with most operations in Finland and Sweden, but it also has
operations in China, Laos, India, Brazil, Uruguay, and the United States. The company wasformed through a merger in 1998 and is headquartered in Helsinki, Finland. (source)Firsts, records andcertificationsFirst Finnish forest product company to enter the green bond market.

Proceeds description

Proceeds will be earmarked to finance projects under sustainable forestry, renewableenergy, water, waste, energy efficiency and renewable/low carbon/eco-efficient producttechnologies and processes.
Eligible renewable energy projects include power generation from biomass and wasteproducts, as well as related renewable energy infrastructure. Energy efficiency projects are
expected to meet a 20% improvement threshold and cannot be related to operations
running primarily on fossil fuels. In its Green Bond Framework, Stora Enso states that“where appropriate, the use of proceeds may be used to finance operating expenditures
related to the projects (e.g. forest management, R&D) and will be tracked on a project or
portfolio basis.”

Climate Bonds viewThe debut of the first Finnish forest products company in the green bond market is apromising development, given the country’s potential for financing green assets in the land
use sector. Bioenergy sources come from by-products and are hence aligned to the Climate
Bonds Taxonomy.
Operating expenditures and R&D raise a red flag as they are not aligned to the Climate
Bonds Taxonomy and therefore should make up no more than 5% of the proceeds
allocations to be eligible for inclusion in the CBI Green Bond Database. As the issuer has
committed to track funding going to these project types, we will keep monitoring reporting
to ensure the share doesn’t exceed the 5% threshold.

Underwriters

Nordea, DNB

Deal comments
Credit Rating
Pricing summary
Investors summary

Baa3 (Moody’s)1Issuer categories: ABS, development bank, financial corporate, government-backed entity, loan, local government, non-financial
corporate, sovereign