Green Bond Fact Sheet

Saudi Electricity

Date: 06/10/2020

Issue date: 17-09-2020 Maturity date: 17-09-2025 Tenor: 5Issuer name

Saudi Electricity

Amount issued

USD1.3bn (2 deals)

Country of risk

Saudi Arabia

CBI Database

Included

Issuer type1

Government-Backed
EntityBond type

Sukuk

Green bond framework

N/A

Second party opinion

Vigeo Eiris

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
ReportingCompany information

Saudi Electricity will report annually and until full allocation of the proceeds. After that, it willreport in case of any material changes to the framework. Starting one year after the firstissuance reporting will take place through a dedicated impact report which will be madepublicly accessible the website. After the full allocation of the proceeds, the impact reportwill be then integrated into the Issuer’s annual ESG Report.
Saudi Electricity Company is the national Saudi electric energy company and wasestablished in 2000 through a merger of existing regional electricity companies. Thecompany is involved in the generation, transmission and distribution of electric power in
Saudi Arabia through 40 power generation plants. The Saudi government owns more than
80% of the company.

Firsts, records andcertifications
Proceeds description

The proceeds of the bonds issued under this framework will go towards the procurement
and installation of approximately 10 million smart meters, from which 3.5 million will besourced from Saudi Arabian local manufacturers for different uses (including home,commercial, agriculture etc.). These smart meters are part of the company’s smart
metering project, which aims at offering an automated billing process and improving powerusage patterns. Further, the bonds will fund projects related to the transmission and/ordistribution infrastructure for connecting renewable energy (wind and solar) sources to thegrid.

Climate Bonds view

We welcome another issuer from Saudi Arabia coming to the market – a country that has
seen its first green bonds only in 2019 - and making a splash straight away by raising a large
amount of capital through two consecutive deals. Wind and solar energy have enormous
potential in many Middle Eastern countries, including Saudi Arabia, and the company isaddressing two crucial enabling aspects in the renewable energy space: smart meters andgrid infrastructure. Saudi Electricity has identified a preliminary list of nine projects to becompleted by 2021 and the framework outlines clear objectives and benefits anticipatedfrom the funded projects. This level of transparency at-issuance is to be applauded.
First Abu Dhabi Bank, JPM, HSBC, MUFG, Stanchart

Underwriters
Deal comments
Credit ratingA- (Fitch)
A2 (Moody’s)

Pricing summary

Investors summary•••

Interest spread: ms + 140/170bps
Coupon: 1.74%/2.413%
Price: 100.00%/ N/A

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