Green Bond Fact Sheet

Banco Pichincha

Date: 16/01/2019

Issue date: 20-12-2019 Maturity date: 20-12-2024 Tenor: 5Issuer Name

Banco Pichincha SA(Ecuador)Amount Issued

USD150m

Country of risk

EcuadorCBI Database

Included

Issuer Type1

Financial Corporate

Bond Type

N/A

Second party opinion

N/A(articles mention an
SPO/assurance by Deloitte
but it was not found online)

Green Bond Framework

N/A(articles mention aframework but it wasnot found online)

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
ReportingDifferent sources claim that “IDB Invest’s participation includes conceptual framework
design and a second-party opinion verifying the bond” – if this is the case, reporting on theuse of proceeds and likely on impacts should be expected. However, we have not been ableto find either of these documents online.

Company information

Banco Pichincha is the largest private bank in Ecuador, both by market cap and number ofdepositors. It also has operations in other Spanish-speaking countries, including Colombia,Spain, Panama and Peru.

Firsts, records andcertificationsFirst green bond from Ecuador. It was also the bond used to finance the greatest variety ofprojects in Latam in 2019.

Proceeds description

The proceeds will support projects with measurable environmental benefits, specificallyrelated to energy efficiency, renewable energy, clean production, construction andsustainable transport and waste management. In addition, this issuance improves thesupply of sustainable investment financial products in Ecuador’s capital market.

Climate Bonds view

The addition of Ecuador to the list of countries with green bond markets is a welcome
development –that is happening via a domestic bank is even more positive. Financial
corporates have an enhanced ability to increase the visibility of green investment while
funding projects in diverse sectors.
It is also worth noting that the bank had previously issued a social bond (although inPeru), demonstrating its commitment to generating positive social/environmentalimpacts. In both cases, IDB Invest (the private arm of the LatAm-based Inter-American
Development Bank) provided part of the financing and acted as an advisor to the bank.
IDB, mainly through IDB Invest, is becoming increasingly active within the sustainablefinance space in the region, including having its own support programme for public
sector issuers. It announced a Green Bond Transparency Platform (Climate Bonds is
one of the supporting entities to the Platform) with further rollout later in 2020. We
expect IDB to continue supporting the regional market in various ways.
Finally, Latin America faces a significant green infrastructure funding gap, more so thanseveral other regions, while also being among the most vulnerable to the effects ofclimate change. The development of LatAm green finance markets is one of Climate
Bonds 2020 priorities. 2019 was a very active year for the region in this context. We
hope more good things will come in 2020!

Underwriters

Deal comments
Credit Rating

AAA- (BankWatchRatings)

Pricing summary
Investors summary

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