Green Bond Fact Sheet

Electrolux

Date: 23/07/2019

Issue date: 27-03-2019 Maturity date: 27-03-2024 Tenor: 5Issuer Name

Electrolux

Amount Issued

SEK1bn/USD107.8m

Country of risk

SwedenCBI Database

Included

Issuer Type1

Non-financial
corporate

Bond Type

Senior unsecured

Green Bond Framework

Link to framework

Second party opinion

CICERO

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

An annual Green Bond Impact Report will be published including the following:• the total amount of Green Bonds that have been issued by Electrolux which are
outstanding• a description of the portfolio of approved Eligible Green Assets that have been
financed using the net proceeds of the Green Bonds (including the amount allocatedto each Eligible Category)• a description of the Eligible Green Assets including allocated amounts and theirmain environmental benefits• information about the split of Green Bond proceeds between new assets and refinancing• the total amount of unallocated Green Bond proceeds (if any)
• where possible, quantitative descriptions of the environmental benefits of theEligible Green Assets as well as description of any Eligible Green Assets which
involve fossil fuels.
Electrolux is a Swedish appliance company. Based in Stockholm, it manufactures and sells
household and professional appliances such as refrigerators, dishwashers and small
domestic appliances. Operating globally through multiple brands Electrolux employs 54,000
people and is publicly traded. Sustainability is embedded in their core business. Therefore,
Electrolux acknowledges the significance of these appliances beyond simply the use andviews them as a means to make households more sustainable.

Firsts, records andcertifications
Proceeds description

The proceeds of the bond can be spent on eligible projects in the following categories,
relating to four of Electrolux’s nine sustainability promises. a) to c) include the financing ofresearch, development and equipment of that particular purpose:a) Improve product performance and efficiency, which relates to reducing theenvironmental impact (energy and water consumption) resulting from the use of products.
Eligible R&D projects will aim to improve the energy efficiency (weighted average) at least
15% compared to the average of current products produced for a specific market.
b) Make better use of resources, which relates to improving the efficiency of materials that
the Group uses and increasing the use of recycled materials. Eligible Green Assets in thisEligible Category should result in material compositions with at least 25% recycled material
in the matrix, and Eligible Green Assets relating to R&D should have the target to achieve
the same result.
c) Eliminate harmful materials, which relates to phasing out substances that could have anegative impact on health and/or the environment including refrigerants and foam blowing
agents with high greenhouse warming potential. The proceeds will go towards investments
in R&D with a view to eliminating refrigerants and foam blowing agents with a GWP which
is higher than 15 CO2eq.
d) Achieve more with less, which relates to reducing the impact from the Group’soperations on the environment related to energy, water, waste and emissions. In particularthis means investments in buildings or in equipment that will reduce the environmental
impact from the Group’s operations (factories, warehouses and offices).
e) Climate targets, which relates to reducing greenhouse gases produced by the Group(factories, warehouses and offices) through the generation of renewable energy such as
geothermal energy, wind power, solid or gas bio-based energy, solar panels (collector) or
photovoltaic panels.
Electrolux does not exclude financing or re-financing of processes using fossil fuel-basedenergy generation in the case that either the percentage is smaller than 5% or a technicallyand economically viable solution for renewable energy does not exist.

Climate Bonds view

Underwriters

Having sustainability incorporated in their core strategy, it is great to see Electrolux issuingtheir first green bond and covering a broad range of eligible categories ranging from energy
and green buildings to waste management. They are the second green bond issuer in
Sweden in the consumer discretionary industry (of roughly 40 issuers in total) andtherefore set a good example.
Skandinaviska Enskilda Banken

Deal comments
Credit Rating

A- (S&P)

Pricing summary••••

Interest spread: ms+68bps
Yield: 1.103%
Coupon: 1.103%
Price: 100%

Investors summary

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