Green Bond Fact Sheet

Sabará

Date: 17/09/2019

Issue date: 12-08-2019 Maturity date: 12-08-2019 Tenor: 5Issuer Name

Grupo SabaráAmount Issued

BRL20m/USD4.9m

Country of risk

BrazilCBI Database

IncludedIssuer Type1

Non-financial
corporate

Bond TypePrivate placement

Green Bond Framework

N/A

Second party opinion

Sitawi (not publiclyavailable)

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☐ Wastewatertreatment☐ 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
Reporting

Sabará will disclose the use of proceeds and impacts (various metrics/indicators) via annual
updates on its website and every 3 years in its Sustainability Reports, until maturity.

Issuer information

Grupo Sabará is a chemicals producer. It mainly develops products with applications inwater treatment, cosmetics, food and drink, and animal health and nutrition. It started
operations more than 60 years ago and distributes to over 40 countries.

Firsts, records andcertificationsFirst Brazilian green bond financing Industry since Suzano’s in 2017. It is also the only everBrazilian deal that only finances Industry, and the smallest ever deal from a Brazilian issuer.

Proceeds description

The proceeds will finance/refinance investments related to the construction of an industrial
plant that produces sodium chlorite in Santa Barbara d’Oeste, state of São Paulo, as well aspurchases of supplies and packages related to the same product. It will be the first plant ofthe kind in Brazil. The production process relies entirely on renewable energy. Sodium
chlorite is a chemical compound used in the manufacturing of paper and as a disinfectant(e.g. of water). It is a cleaner alternative than traditional oxidants in paper production andreduces the need for energy and water in the production of sugar and alcohol.

Climate Bonds view

Industrial processes are a large contributor towards GHG emissions. There has been limited
issuance in this sector compared to others, so it is positive to see green bonds financing anincreasing variety of industrial processes and products. According to the SPO, the use ofsodium chlorite is cleaner than its alternatives and may reduce pollution and emissions indownstream stages of production.
Further, it shows how smaller issuers (in this case the bond was just under USD5m) canaccess the green bond market, especially via private placements, which are more common
in Latin America than any other region.

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