Green Bond Fact Sheet

Sonae SGPS

Date: 01/05/2020

Issue date: 08-04-2020 Maturity date: tbc Tenor: tbc
Issuer Name

Sonae SGPS

Amount Issued

EUR55m/USD60m

Country of risk

Portugal

CBI Database

Included

Issuer Type1

Non-Financial
Corporate

Bond Type

Loan

Green Bond Framework

N/A

Second party opinion

N/A

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

Not disclosed

Company information

Sonae SGPS is a large commercial group operating in various sectors. The green loan is for
its subsidiary Sonae MC, which is one of the largest food retail businesses in Portugal,
namely through the Continente brand (hundreds of medium and large supermarkets
throughout the country) and to a lesser extent Meu Super (small / medium stores).

Firsts, records andcertificationsFirst green loan in Portugal, and first green finance deal for a Portuguese food retailer

Proceeds description

The proceeds may be used for various types of projects aimed at making Sonae MC’s foodretailing more environmentally friendly. This primarily includes improving energy and water
management in stores (e.g. via enhanced management systems), some renewable energy
generation, improving waste management processes, and adding EV charging stations inparking lots.

Climate Bonds view

This is a milestone for green finance in Portugal in a very important sector. Even globally,
there is still a lack of investment in greening food services. The deal also complements aloan to Sonae MC from the EIB earlier this year, which was aimed at achieving similar
improvements in its operations.
However, the green loan could be given higher visibility in Portugal, both among thegeneral public as well as other potential issuers, especially given Sonae MC’s ownership ofinfluential and well-known brands and that due to the current pandemic food retail has
been in the spotlight even more.
We also note that the deal does not carry an external review, and that, as a loan, reporting
is often more nebulous. We encourage Sonae MC to report adequately on the use ofproceeds and impacts achieved, for example in line with the recently published LMA
guidance on Green Loans.
Raiffeisen Bank International (lender)

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