Green Bond Fact SheetERG Spa

Date: 16-Apr-2019

Issue date: 11-Apr-2019 Maturity date: 11-Apr-2025 Tenor: 6 years
Issuer Name

ERG

Amount Issued

EUR500m (USD564m)

Country of riskItaly

CBI Database

Included

Issuer Type1

Non-Financial Corporate

Bond TypeSr Unsecured

Green Bond Framework

Green Bond Framework

Second party opinion

Vigeo-Eiris

Certification Standard

N/A

Assurance report

N/A

Certification Verifier

N/AGreen bond rating

N/A☐ Energy☒ Solar☒ Onshore wind
☒ Offshore wind
☐ Geothermal☐ Hydro☐ Tidal☐ Biofuels☒ Bioenergy☐ Waste to energy☐ District heating☐ Electricity grid

☐ Energy storage☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Buildings☐ Certified Buildings☐ HVAC systems☐ Energy performance☐ 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☐ Wastewater treatment☐ 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☐ 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

ERG commits to publishing an annual allocation report and impact report until proceeds havebeen fully allocated. Information will include the amount of net proceeds allocated per project,
the percentage of refinancing, project location and status, and the amount of unallocatedproceeds (if any). Impact reporting metrics will include:• Solar: Installed renewable energy capacity (in MW)• Wind: Produced Green Energy (in MWh per year)• All projects: Estimated annual emissions avoided (in tons of CO2 equivalent/year)
ERG recently published a EUR1bn MTN programme that includes issuances of benchmark
bonds to increase their green assets. ERG was one of the main gasoline providers in Italy not along time ago, and after selling this branch to Total, it has been moving towards renewableenergy. Currently, 29% of their electricity is produced with fossil fuels (mainly from a gas plantin Siracusa), but this share is decreasing, and their Europe-wide portfolio is getting greener.

Firsts, records andcertifications
Proceeds description

Climate Bonds view

The proceeds will be used to finance or refinance renewable energy projects in Europe. For
refinancing, solar projects must not be older than 24 months calculated from the issuance date
and for wind projects, the equivalent time limit is 36 months.
Italy has already reached its 2020 target for the share of renewable energy, driven mainly bysolar power (especially in the South where solar radiation is intense). Significant investments
have been made in this field, even after incentives ended in 2014. While production levels
have been decent, companies have often lacked on stakeholder engagement. Green bonds are
known to help with this as they facilitate transparency and accountability.
Only 13 bonds so far have been issued by Italian energy sector players, with three issues eachfrom Enel and Terna. The issuance from ERG is therefore a welcome addition to the pool andhelps with market diversification.

Underwriters

BNP Paribas, CaCIB, MedioBanca, UBI, Banca IMI, UniCredit, Barclays

Deal comments
Credit Rating
Pricing summary

Fixed rate interest of 1.875%

Investors summary

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