Green Bond Fact Sheet

AluparDate: 17/01/2019

Issue date: 26-12-2019 Maturity date: 15-12-2044 Tenor: 25
Issuer NameTransmissora Serra da
Mantiqueira (TSM)

Amount Issued

BRL530m/USD131m

Country of risk

BrazilCBI Database

Included

Issuer Type1

Non-FinancialCorporate

Bond TypeSr Unsecured

Green Bond Framework

N/A

Second party opinion

Sitawi

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

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
ReportingCompany information

The issuer will report on the allocation of proceeds annually on its website until full
allocation, while multiple environmental impact indicators (as well as licensing status for theline) will be disclosed until bond maturity. In addition, Sitawi will perform a post-issuance
verification within one year after issuance.
Alupar is a Brazilian energy holding company operating in generation and transmission,with multiple subsidiaries. It also has operations in Peru and Colombia. In total, it has theconcession of 30 transmission systems totalling 7,929kms of lines, as well as 10 energy
generation assets totalling 687MW of installed capacity (through seven hydro and one windproject in operation, and two hydro projects under construction).

Firsts, records andcertifications
Proceeds description

The proceeds will finance and refinance payments related to the implementation of atransmission infrastructure project connected to SIN (Brazil’s national grid). The project isbeing developed by Transmissora Serra da Mantiqueira S.A, a special purpose vehicle
controlled by Alupar. It involves the construction of 330kms of 500kV transmission lines,
which started in 2017 and is expected to conclude in 2022.

Climate Bonds view

The investment is not specifically related to transmission of renewable energy. However, as
noted in the SPO, while various (renewable and non-renewable) energy sources contributetowards SIN, securing a continuous and reliable electricity supply is particularly important
for renewable sources in Brazil, and the average emissions intensity for SIN is far belowthat of other isolated systems in the country. Finally, the proportion of renewable sources
within SIN has been growing rapidly and is expected to continue growing.
Itau BBA

Underwriters
Deal comments
Credit Rating
Pricing summary

IPCA + 4.5%

Investors summary

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