Green Bond Fact Sheet

Center-invest Bank (KB Tsentr-Invest PAO)

Date: 19/11/2019

Issue date: 15-11-2019 Maturity date: 13-11-2020 Tenor: 1
Issuer Name

Center-invest Bank(KB Tsentr-InvestPAO)

Amount Issued

RUB250m/USD4m

Country of risk

RussiaCBI Database

Included

Issuer Type1

Financial corporate

Bond TypeGreen Bond Framework

N/A

Second party opinion

RAEX-Europe

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
☐ Flood protection☐ 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☐ Waste to energy☐ Industry: components☐ Adaptation & resilience☐ 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 green bond register (which will include all information necessary for identification of alleligible projects) will be used as a basis for reporting within the green bond issuance. TheBank confirmed, that the information on the projects,
financed by the green bond’s proceeds will be included in the Annual environmental reportof the Bank as a separate annex. The Bank has a track record of environmental reports
publication since 2008. However, it remains unclear what the reporting will include exactly(i.e. allocation, impacts, or both?) as well as the level of granularity of the information andimpact metrics used.
At issuance, the bank expects that the green bonds will lead to the reduction of CO2
emissions by at least by 4,000 tons (calculation based on the track record of CO2 emission
decline calculations performed by the bank’s employees for the period from 2005 to 2019),
although the usefulness and reliability of this disclosure is very limited given that: a) there is
no external review of this calculation and b) crucially, it seems to apply to the bank’s own
operations rather than the projects it will lend to using the green bond’s proceeds.

Company information

Center-invest Bank (KB Tsentr-Invest PAO) is one of the leading private banks in southern
Russia, accounting for over 30% of the total capital, assets, loans and deposits of theregion's local banks. It provides retail customers and businesses in southern Russia with awide range of banking services and products.

Firsts, records andcertificationsFirst green bond by a Russian financial corporate. First RUB-denominated green bondissued by a Russian entity (previous ones had been by: Credit Agricole, 1x; EBRD, 3x; andWorld Bank, 7x). First Russian green bond financing multiple categories (previous had only
financed rail transport)

Proceeds description

The proceeds will finance loans for a range of renewable energy, energy efficiency andclean transportation projects in Russia, which are listed in the SPO. The energy efficiency
projects include some in energy, buildings and transport.

Climate Bonds view

Bank issuance is lacking in many countries, despite being one of the most powerful ways toincrease green financing to projects at scale. This is therefore a positive development in acountry with a currently very small green bond market, albeit with just a one-year term.
We would hope that Center-invest Bank adds detail to its reporting to align with market
best practice but acknowledge that reporting is expected to be minimal given theextremely short term.

Underwriters
Deal commentsCredit Rating

Pricing summary
Investors summary

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