Green Bond Fact Sheet

Taesa

Date: 20/06/2019

Issue date: 24-05-2019 Maturity date: 15-05-2044 (43 tranches starting in 2023) Tenor: 25Issuer Name

Taesa (Transmissora
Aliança de EnergiaElétrica)

Amount Issued

BRL210m/USD52m

Country of risk

BrazilCBI Database

Included

Issuer Type1

Non-financial
corporate

Bond TypeSr unsecured

Green Bond Framework

N/A

Second party opinion

Sitawi

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☐ Wastewater
treatment☐ 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
ReportingCompany information

The issuer commits to disclosing the allocation of proceeds (confirming they have beenspent on the selected projects) and some environmental impact indicators, annually
until full allocation. This will be provided on Taesa’s website and Sitawi (SPO provider)will evaluate this disclosure up to one year after issuance.
Taesa – Transmissora Aliança de Energia Elétrica – is one of the largest electric powertransmission companies in Brazil. It is majority owned by Belo Horizonte-based CEMIG,
but the Colombia-based Interconexion Eléctrica is the second largest shareholder.
Taesa is dedicated to the construction, operation and maintenance of transmission
assets, with almost 10,000km of lines in operation and 3,000km under construction.

Firsts, records andcertificationsFirst Brazilian bond reviewed by Sitawi in 2019

Proceeds description

To finance or refinance investments in energy transmission infrastructure projects.
Whilst these are not limited to transmitting renewable energy, only 16% of energy
transmitted in Brazil's national system was from fossil fuels (below the 25% limit CBIuses). In any case, Taesa gives several other reasons why the projects will support thedevelopment and generation of renewable energy in Brazil.
Specifically, the green bond will finance the following transmission projects: Mariana(Minas Gerais State), Miracema (Tocantins State), Sant’ana (Rio Grande do Sul State).
More details about these can be found in the SPO.

Climate Bonds view

We believe the projects financed by this bond will further support the growth ofrenewable energy production and distribution in Brazil, which is a clear positive.
In addition, Brazil – and more broadly LatAm – issuance was very weak in 2018,
especially compared to 2017. It is good to see 2019 issuance picking up, and we hope
this continues. However, it would also be good to see more issuance from othersectors, as three of Brazil’s four bonds issued in 2019 only financed energy. This isespecially important in Brazil, where a significant share of energy is already fromrenewable sources and other sectors have a high contribution to GHG emissions andother negative environmental impacts.

Underwriters
Deal comments
Credit RatingPricing summary
Investors summary

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