Green Bond Fact Sheet

Greenalia Biomass Power Curtis Teixeiro

Date: 12-Sept-2018

Issue date: 27-07-2018 Maturity date: N/A Tenor: N/AIssuer Name

Greenalia Biomass
Power Curtis Teixeiro

Amount Issued

EUR125m(USD145m)

Country of risk

Spain

CBI Database

Included

Issuer Type1

Loan

Bond TypeGreen 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

E1/77 (S&P Global Ratings)☒ 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
☐ 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

N/AGreenalia is a Spanish group of companies originally operating in the forestry sector andlater expanding its activity to the energy sector, its practice being in line with the European
roadmap to achieve a low-carbon economy. Within the energy sector, Greenalia operates
in the production of electric power, thermal energy, industrial energy (biofuels). Thecompany is also dedicated to logistics.

Firsts, records andcertifications
Proceeds description

Proceeds will be allocated to the construction of a biomass plant in the town of
Teixeiro (Province of La Coruña, Spain). The plant will have the capacity of
approximately 50MW and is expected to generate 324GWh per year from forest
waste collected within a 100km radius of the new installation.
According to the issuer, this project will be beneficial for the maintenance offorests in the area and the prevention of fires, while encouraging the collection ofsmall-sized waste that is normally discarded for industrial use. The biomass used by
the plant will be FSC or PEFC certified. The issuer has committed to disclosing
sulphur dioxide (SO2), nitrogen oxides (NOx), and carbon monoxide (CO), among
other metrics, once the plant becomes operational. S&P Global Ratings notes thatthe deal lacks a clear project selection process based on calculations of expectedenvironmental impacts.

Climate Bonds view

This is the Second Spanish issuer to finance a biomass project through a green
loan. It’s good to see the issuer committing to reporting the environmental impactsof the project. We agree with S&P Global Ratings that providing a project selection
criteria would enhance the deal’s transparency.

Underwriters
Deal comments
Credit Rating
Pricing summary
Investors summary

EIB, Banco Santander (senior tranche) and Marguerite fund (mezzanine tranche)
amongst others.

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