Green Bond Fact Sheet
KBC

Date: 22-Jun-2018

Issue date: 27-Jun-2018 Maturity date: 27/06/2023 Tenor: 5Issuer Name

KBC

Amount Issued

EUR500m/USD582m

Country of risk

Belgium

CBI Database

IncludedIssuer Type1

Financial Corporate

Bond TypeGreen Bond

Green Bond Framework

Link to Framework

Second party opinion

Sustainalytics

Certification Standard

Solar, Wind, Marine
Renewable Energy,
Low Carbon Buildings(Residential)

Assurance report

N/A

Certification Verifier

Sustainalytics

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

Issue details
Reporting

The issuer is committed to disclosing proceed and impact indicators of financed
projects annually. (Link to website)

Company information

KBC Group (“KBC”, or “the company”) is a European financial group with a focus onproviding bank-insurance products and services to retail, SME and mid-cap clients.

Firsts, records andcertificationsFirst Belgian green bond from a financial corporate.

Proceeds description

The inaugural deal obtained certification under the Solar, Wind, Marine Renewable
Energy, Low Carbon Buildings (Residential) Criteria of the Climate Bonds Standard.
Proceeds will finance solar, onshore and offshore wind, as well as loans for new
residential properties in the Flemish region. To be eligible, properties must comply
with the requirements of the Flemish Region’s building code from 2014 or later(specifically, E-level ≤ 60) and the first loan drawdown must have occurred after 1January 2016.
In Belgium, new or renovated buildings have to fulfil Energy Performancerequirements and the most important requirement is the E-Level. This is defined as
the annual primary energy consumption of the property divided by a reference
consumption. The lower the E-Level, the more efficient the property. The minimum
required by law in Belgium is E-Level<100, so an E-Level of <60 is quite efficient.
Eligible categories under the Green Bond Framework include geothermal energy,
sustainable biomass and waste to energy, low carbon transport, waste
management and recycling, water management and sustainable land use. On theproperty side, it allows for green energy loans for retail clients, where at least 50%
of home improvements enhance energy performance, and for loans on commercial
real estate, where the property is in the top 15% in terms of energy performancefor the country, or buildings have obtained at least LEED Gold, REEAM Very Goodor HQE Excellent certification.

Climate Bonds view
Underwriters
Deal comments

ABN Amro, Barclays, Commerzbank, Credit Agricole CIB, KBC

1Credit Rating

Baa1 (Moody’s), BBB+ (S&P)

Pricing summary

The deal was priced at 72bps over mid-swaps and received orders for overEUR1.6bn. (source)

Investors summary

The issue was restricted to institutional and professional investors. The deal wasplaced with 113 different investors. (source)

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