Green Bond Fact SheetBKW Group

Date: 23/07/2019

Issue date: 29-07-2019 Maturity date: 29-07-2027 Tenor: 8Issuer NameBKW Group

Amount Issued

CHF200m/USD201.7m

Country of risk

Switzerland

CBI Database

IncludedIssuer Type1

Non-financial
corporate

Bond Type

Senior unsecured

Green Bond Framework

Link to framework

Second party opinion

ISS-oekom

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
Reporting

BKW will annually report on the allocation of net proceeds and associated impact metrics
until the bond matures as a part of the annual report. In case there are material
developments, this will be reported as necessary. The report will contain the following:- (Re-)financed Green Projects
Description
Aggregated amount of allocation of net proceeds
Impact measurement metrics- Proportion of net proceeds used for financing versus refinancing- Balance of any unallocated proceeds invested in cash and/or cash equivalents

Company information

BKW AG is an energy and infrastructure company that provides energy supply services. Thecompany plans, builds and operates infrastructure in order to produce energy throughnuclear power, large-scale hydropower, natural gas, wind energy, biomass, solar and otherrenewable energy sources. BKW plans to achieve 75% of the production capacity to berenewable by 2023. Clients range from businesses, households to the public sector. BKW
AG employs around 8,000 people and is based in Bern, Switzerland.

Firsts, records andcertificationsFirst utilities issuer in Switzerland

Proceeds description

The BKW Green Bond Framework allows financing including capital expenditures, operating
expenditures, research and development, as well as acquisitions of companies for thefollowing categories:- Renewable Energy: projects aimed at increasing the production, connection anddistribution of renewable energies and related infrastructure- Energy Efficiency: investments in smart grid/meters and grid infrastructure improvements
as well as storage systems development- Green Buildings: New, existing or refurbished buildings which have to meet a certain setof criteria- Terrestrial Biodiversity Conservation: Land preservation and grid improvement through,the replacement of overhead power lines with efficient underground cable or installation ofunderground cables instead of overhead power lines
As for now, BKW allots the proceeds to small hydro power plants (12%) and wind plants(88%) in Norway, France and Switzerland.

Climate Bonds view

Underwriters

It is great to see the first climate bond issued by a utility company from Switzerland
distributing the proceeds to hydro power and wind plants in Norway, France andSwitzerland. We hope this will lead as an example and more countries in Europe will follow.
BNP Paribas (Suisse), UBSDeal comments
Credit RatingPricing summary••••

Interest spread: ms+60bps
Yield: 0.207%
Coupon: 0.250%
Price: 100.337%

Investors summary

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