Accessing the Global Markets Through London London Stock Exchange - - PowerPoint PPT Presentation

Accessing the Global Markets Through London

London Stock Exchange Green Bonds November 2016

Primary Markets Cash Equities Derivatives Fixed Income IDEM RNS MOT X2M Technology Monte Titoli CC&G ORB ExtraMOT London Stock Exchange Derivatives IDEX GlobeSettle SEDOL Unavista Real Time Data Information Services Post Trade Listing and Trading Business Services Academy Events &Studios OFIS Hosting and Connectivity  LSEG is a leading international open access financial market infrastructure group  LSE plc sits within LSEG as the UK Recognised Investment Exchange business.

LSE Group – Depth and Breadth

2

Equities

2,300

Listed companies with aggregate market value of $7 trillion

500+

International companies with a combined market value of $3.7 trillion

$914bn

Raised in last 10 years from 2005 – 2015

Debt

15,000+

Debt securities listed

• n LSE Main Market.

Overall money raised exceeds $4.8 trillion

375+

International government bonds from 34 different countries in 11 different currencies

$338bn+

Raised by sovereign, regional and local governments

£257bn

Total on-exchange turnover in 2015

ETFs

1,300

ETFs and ETPs listed in London from 24 issuers

43%

Market share of European ETF trading

10

RQFII ETFs listed

• n LSE since 2014

giving investors exposure to Chinese A-shares directly.

300%

Growth in European ETF trading volumes in the past 5 years

Heart of the World’s Capital Markets

3

11

IPOs raising over $1bn in London in the last 3 years.

The London Proposition

4

2,074 2,010 2,536 590 1,672 638 364 318 146 29 500 1000 1500 2000 2500 3000 LSEG NYSE NASDAQ SGX HKSE # of Companies* Domestic International

Global Financial Centres Index 20

Source : Factset, GFCI 20

Broad Capabilities Across Many Debt Markets and Currencies

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 % of ETF trading Green Bonds Islamic Finance Dim Sum Bonds High Yield Convertible and Structured Debt ORB Masala Bonds Euro US Dollar British Pound Swedish Krona Australian Dollar Norwegian Krone China Renminbi Japanese Yen Hong Kong Dollar Canadian Dollar Mexican Peso Other ‘Other’ includes 32 different international currencies across 225 bonds, raising a combined £25.2bn

More International Equity Listings Than Any Other Exchange Close to 50% trading of ETF in Europe is done in London

LSE DB ENXT B.Italiana SIX

The London Proposition – Snapshot

795 794 752 748 734 720 719 718 716 713

Top 10 Financial Centres by GFCI 20 rating

5

Access to the deepest pool of international capital in the world Robust regulatory standards and efficient listing process Competitive costs Global hub for innovative products (Green Bonds, RMB, Sukuk) Access to a stable and loyal investor base Quality of advisory community and sell-side research coverage Currency to fund business acquisitions & expand into new markets Broaden the shareholder base Enhance profile & visibility - with customers & suppliers Long term employee incentives

Why consider a Listing on the LSE

Benefits of Listing in London

6

• UK assets under management totalled a record £6.8

trillion in 2014, the second largest in the world. The UK is also the leading European centre for management of hedge funds, sovereign wealth funds and private equity funds.

• The UK accounts for 37% of global foreign exchange
• trading. More US dollars are traded in the UK than in

the US.

• The UK is the leading derivative centre worldwide,

accounting for 39% of trading in OTC interest-rate derivatives

• The UK has the leading share of trading in many

international financial markets such as cross border bank lending (16%), international insurance premium income (29%) and foreign exchange trading (37%).

Equity AUM held in International Portfolios, by Metro Area (Q4 2015)*

Key Facts:

• London, more than any other financial centre, offers a

long-standing globally oriented investor base

• UK investors have diversified portfolios and are used

to supporting companies’ international development

• Institutional investors in the other major listing venues

tend to be more domestically focused

• Global investment portfolios ensure that investors

appropriately value businesses with a global profile and aspirations

The Largest Investor Pool in the World

$2 trillion invested in international equity out of London

7 1,987 1,002 575 375 304 287 275 263 251 194 188 89

London New York Oslo Toronto Paris Zurich Frankfurt Tokyo Amersterdam Stockholm HongKong Sydney

Source: Facset and LSE calculation, 2016 *international portfolios defined as investment in companies with a domicile different to the country of domicile of the portfolio manager

Domestic

Domestic Domestic Domestic Domestic Domestic

ROW ROW ROW ROW ROW ROW

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

• London remains the world’s largest equity market, with more international assets under management than any other global financial centre.
• Companies listing in London are able to access overseas investors through widely used and well understood capital raising routes.

Domicile of Investors in LSE-Listed Securities by Region

6%

13%

30%

Domicile of Investors in Selected Exchange’s Listed Securities

51%

A Truly Global Investor Base

Global Investors Buy London-Listed Stocks

8

Asia Pacific

• State Administration of Foreign

Exchange (China)

• GIC
• BNY Mellon Hong Kong
• Blackrock Japan
• Mitsubishi UFJ Trust
• Sumitomo Mitsui
• Aberdeen Asset Management

Asia

• Hang Seng Investment

Europe

• Blackrock
• Legal & General
• Scottish Widows
• Invesco
• M&G
• Standard Life
• AXA
• Societe Generale
• Alecta Pension
• DWS Investment
• Swedbank Robur
• Allianz Global Investors
• BNP Paribas
• Union Investment

Privatfonds GMBH

• Norges Bank

Americas

• Capital Research
• Vanguard
• SSgA Funds
• Fidelity
• Blackrock
• Thornburg Investment
• Artisan Partners
• Alliance Bernstein
• T. Rowe Price
• Caisse de dépôt et

placement du Québec

• Itau Unibanco Brazil

Africa and Middle East

• QIA
• P.I.C South Africa
• Kuwait Investment Authority
• Investec
• CCB Islamic Bank
• Abu Dhabi Investment Authority
• 11
• 10
• 9
• 8
• 7
• 6
• 5
• 4
• 3
• 2
• 1

1 2 3 4 5 6 7 8 9 10 11

London trading hours

Selected Major Institutional Investors in London Listed Bonds

GMT

• Listing in a global market such as London raises a company’s international

profile.

• High international regulatory standards ensure access to a globally oriented

investor base

• LSE is home to the deepest global foreign exchange centre.
• LSE markets are supported by a network of 350 member firms from over 20

countries*,

Raise Your International Profile

London – Global Hub for Investors

9

• London Stock Exchange’s Capital

Markets Days facilitate face-to-face, scheduled dialogue between companies and institutional

• investors. This is usually done to

highlight a specific region or sector focus.

• Our central position within the

London financial markets offers an unbiased arena in which to bring together select groups of companies with the most extensive possible network of appropriate potential investors.

Format

Market Opening: Unique opportunity for all companies, dignitaries and sponsors are invited to

• pen London’s market at 08:00 on the day of the event. This is filmed and can be accessed by

international TV stations broadcasted in their relevant regions. A photographer is also present. Presentations: Welcome by a senior executive of the London Stock Exchange, giving an

• verview of the market/sector. Summary of the IPO process by top City advisors and investors.

Each company will have an opportunity to explain its investment story. 1-2-1 meetings: Highly targeted individual meetings pre arranged by the Exchange. Each company has its own private meeting room the entire day which is fully equipped with all AV capabilities. Maximising exposure: Through the Exchange’s press team from organisations such as the BBC, The Wall Street Journal, the Financial Times, CNBC & Sky News.

London Stock Exchange Capital Markets Days

10

As a result of the recent EU Referendum and subsequent Brexit vote, uncertainty about London’s status as a financial centre has arisen. The international community has responded and shown their commitment to London via a number of high profile transaction announcements, thus proving London is open and ready for business India’s HDFC Lists the First Masala Bond in London Japan’s SoftBank Announces £24bn Takeover of UK’s ARM Holdings GlaxoSmithKline invests £275m for Three New UK Manufacturing Sites

• On 21st July, Housing Development Finance Corporation

(HDFC) issued the world’s first Masala bond issued by an Indian corporate

• The issue was 4.3 times oversubscribed and paves the

way for the opening of the Masala bond market globally to support Indian company and infrastructure financing

• Distribution: 86% taken by Asian investors and 14% by

European investors; Institutional investors made up 82% and private banks 18%

• “This is a milestone transaction for HDFC. We have

achieved our objective of attracting a global pool of capital to diversify our borrowing profile, The positive investor response towards this issuance reinforces the blue-chip positioning of HDFC, and establishes a significant benchmark for Indian companies” said HDFC chairman Deepak Parekh.

• UK technology firm ARM Holdings is to be bought by

Japan's Softbank for £24bn

• ARM Holdings designs microchips used in most

smartphones, including Apple and Samsung models, and employs more than 3,000 people

• Softbank has previously acquired Vodafone's Japanese
• perations and the US telecoms company Sprint. The

$20bn deal was the biggest foreign acquisition by a Japanese firm at the time

• The new deal will be funded by Softbank's own cash

reserves and a long term loan from Japan's Mizuho Bank

• Masayoshi Son, chairman and chief executive of

Softbank, said: "This is one of the most important acquisitions we have ever made, and I expect ARM to be a key pillar of SoftBank's growth strategy going forward

• Despite arguing against Brexit before the referendum,

GSK believes the UK remains an attractive place for making medicines – London currently accounts for nearly 50% of GSK’s worldwide R&D and a third of it’s manufacturing.

• The company recently announced plans to invest a further

£275m into three drug manufacturing sites in Britain, signalling its confidence in the country despite last month's vote to leave the European Union

• "It is testament to our skilled UK workforce and the

country’s leading position in life sciences that we are making these investments in advanced manufacturing here," said Chief Executive Andrew Witty

• Business minister Greg Clark said GSK's move was a

clear vote of confidence in Britain and demonstrated that "there really is no place better in Europe to grow a business"

After Referendum Business As Usual

International Deals Continue

11

London Stock Exchange’s Fixed Income Offering

12

…via 15,000+ Listed debt instruments … raising

£3.5 trillion

…from 59

countries

…in 39

currencies 2570

Int’l issuers..

3% 97% Issuance 70% 30% Trading 13% 87% Amount Outstanding

UK Rest of World

2011

The London Stock Exchange is the global financing hub for fixed income issuers

Bond Primary and Secondary Market Statistics by Region

70% Of global secondary market bond trading takes place in London

Global Home for Raising Fixed Income Capital

13

Centre of Global Fixed Income Trading

5,500 7,000 13,000 22,000 32,500 2001 2002 2005 2008 2011 2015

Bonds Value Traded on Exchanges (USDm)

+18% CAGR (2001-2011) *

LSEG has developed highly liquid and transparent electronic fixed income order books that allow for both primary and secondary access and trading to international investors With changes to regulation including MiFID II and the associated pre- and post- trade transparency requirements, we anticipate that demand for credible secondary market platform trading for bonds will increase

14

Apart from standard issuance we are leading the way in new fixed income products

Green Bonds

• Retail and wholesale markets, offering the

choice of trade reporting, end-of-day pricing and continuous quoting

• Unique and comprehensive specialist
• ffering for green bonds
• Dedicated green segments
• Industry Affiliations:
• ICMA GBP Observer, Social Stock

Exchange, Climate Bonds Initiative, City of London Green Finance Initiative Islamic Finance

• LSE is a key global venue for the issuance
• f Sukuk
• There are over 20 banks in London

providing Islamic financial services, more than any other European country

• Unique and comprehensive specialist
• ffering for sukuk
• Dedicated sukuk fixed income segments

Dim Sum Bonds High Yield

• LSE’s PSM accommodates all types of debt

securities including high yield bonds in any denomination under a wholesale regime

• The PSM is a global listing venue attracting

investment from many other locations in Europe, Asia, Latin America and Australia Convertible and Structured Debt

• LSE’s PSM accommodates all types of debt

securities including convertible bonds in any denomination under a wholesale regime

• Many investors can only buy debt

instruments listed on a Recognised Investment Exchange. LSE is well positioned to provide efficient and well- regulated markets for both bond issuers and investors ORB

• LSE’s flagship retail

market - both primary issuance and secondary trading of retail denominated bonds

• Retail bonds can also

be held in an ISA, which is a tax-free savings account Masala Bonds

• LSE is a key global venue for the issuance
• f Masala bonds
• Listing venue for the world’s first Masala

bond from an Indian corporate

• Unique and comprehensive dedicated
• ffering for Masala bonds
• LSE is a key global venue for the issuance
• f Dim Sum bonds
• Unique and comprehensive dedicated
• ffering for Dim Sum bonds

Cutting Edge Financial Products

15

Main Market Professional Securities Market Applicable UK Listing Rules

• Chapters 2 and 17 of UK Listing Rules
• Chapter 4 of UK Listing Rules

Financial Records

• At least two years trading records and independently

audited accounts consistent with the International Financial Reporting Standards (IFRS)

• Local GAAP can be used

Listing Documents

• Full prospectus
• No full prospectus required
• Listing Particulars adequate

Transferability

• The debt securities subject to the listing must be freely transferable

Issue Size

• The market capitalisation of the class of the debt securities to be listed must be at least £200,000

Listing of the Whole Debt Class

• All debt securities of the same class should be listed

Designation

• Wholesale & Retail Bonds
• Wholesale Bonds only, although retail denominated

bonds can be issued under the wholesale regime

A Choice of Debt Markets

16

Listing & Admissions Process

17

Smooth Listing Process

UK debt markets’ high standards ensure credibility amongst the global investor base. The UK Listings Authority (UKLA) has a reputation for its a robust and balanced approach to implementing the listing rules whilst maintaining efficiency of the listing process.

• Listing process is a two pronged approach between

LSE and UKLA

• UKLA committed to efficient turn around times:
• Up to 4 clear working days after first

submission

• 2 clear working days** for subsequent

submissions

• UKLA checklist can be used by issuers prior to

submission

• One-off £2,000 UKLA Vetting fee is applied (no extra

annual or application fees)

Typical transaction timeline

UKLA

Documentation Approved and Listing Granted Listing Effective Listing Application

LSE London Listing

Application for Admission to Trading Admission Granted Trading can Begin

Initial review completed

18

Passporting a Prospectus

Easy process to dual list in London via passporting (when the bond prospectus is already approved in another EEA jurisdiction)

For existing notes to be admitted to trading on the regulated market of the London Stock Exchange, the issuer would have to undertake the following steps Action Comment Step 1 Obtain a passport from the existing EEA Competent Authority by submitting a Notification Request Form. The existing EEA Competent Authority has three working days to notify the UKLA that it has approved the base

• prospectus. Once this has occurred, the

issuer can contact the UKLA to apply for the notes to be listed in the UK. Step 2 Submit the security to the UKLA Official List alongside the passport and make some small additions to the document, for example confirm the planned listing on London Stock Exchange in the prospectus. Step 3 Apply to the London Stock Exchange for admission to trading. This involves submitting a completed Form 11 and an electronic copy of the relevant prospectus.

For new notes to be issued under the existing programme to be admitted to trading

• n the regulated market of the London Stock Exchange, the issuer would have to

undertake the following steps: Action Comment Step 1 Send a notification request form in relation to the base prospectus to the existing EEA Competent Authority, who will inform the UKLA If this has already been done for previous admission, there is no need to do it a second time. Step 2 Send an application for admission

• f securities form and a listing rules

checklist to the UKLA2. Note that the application for admission

• f securities form has to be sent for

each new series of notes, the listing rules checklist only needs to be sent the first time an issuer is applying to the

• fficial list of the UKLA.

Step 3 Apply to the London Stock Exchange for admission to trading. This involves submitting a completed Form 11 and an electronic copy of the relevant prospectus. Ensure that the relevant final term specifies, that the notes will be admitted to trading in London. That is the only drafting difference.

• Passporting involves a prospectus approved by the issuer's Home Competent authority in the EEA being accepted by another EEA member state as the basis of a

public offer or admission of securities to a regulated market.

• In this way, issuers with bonds listed elsewhere can gain a London listing quickly and efficiently.

19

Admission Process

For admission, the documents that we need are1:

• Signed Form 1 with EU sanctions complete
• Signed Board Minutes
• Prospectus
• UKLA approved letter
• Confirmation of the note being issued (usually the day before)

Also as soon as possible in the admission process, it is necessary to arrange for the creation of the relevant trading codes:

ISIN/SEDOL ISINs are normally allocated by the country of domicile of the issuer. London Stock Exchange is then responsible for allocating a SEDOL code, which is a unique instrument identifier. Email the Pricing Supplement(s) to smfnewissues@lseg.com and allow 48 hours for these to be assigned. TIDM A Tradable Instrument Display Mnemonic (TIDM) is the three or four character identifier specific to London Stock Exchange. Issuers may request a specific TIDM, which will be issued, provided it is not already in use or reserved. Once reserved, these are held for a period of six months. Requests should be made to the Admissions Team by emailing the issuer name and the instrument name, making it clear that it is a TIDM request, to admissions@lseg.com

information included)). All final documentation needs to be with LSE Admissions by 4pm the day before admission.

20

International Cost Competitiveness

Competitive Fee Structure:

• LSE fees are calculated on a sliding scale, based on issue size and type of issue.
• No fee is payable for setting up an MTN program.
• No annual fee is payable in respect of debt securities on the London Stock Exchange’s markets

Face Value (£m) Fee (£) Greater than

• r equal to

Less than 50 2,500 50 100 4,000 100 and above 4,200 Face Value (£m) Fee (£) Greater than

• r equal to

Less than 25 300 25 50 1,750 50 100 2,700 100 500 3,600 500 above 3,650

Eurobonds & International Issuers Issuers under debt issuance programs

21

Green Bonds

22

“Green finance is key to securing a low carbon future that delivers economic growth, both in Britain and abroad. London is the world’s leading green finance hub and is already the partner of choice for the world’s fastest growing economies.” Simon Kirby, Economic Secretary to the Treasury

Green bonds are any type of bond instrument where the proceeds will be exclusively applied to finance or re-finance in part or in full new and/or existing eligible Green Projects and which are aligned with the four core components of the Green Bond Principles. The key feature of green bonds is the use of proceeds, which are described in the bond’s legal documentation, separately managed within the company, as well as monitored and reported throughout the life of the instrument.

What is a Green Bond?

Renewable Energy Energy Efficiency Eco-efficient products Sustainable Water Management Biodiversity Conservation Clean Transportation Pollution Prevention Sustainable Management Climate Change Adaption

Categories of Potential Eligible Green Projects

• With growing investor

emphasis on sustainability, green bonds are one of the fastest growing market segments internationally.

• Green bonds make up 17%
• f the $694bn climate-

aligned universe, up 7% from 2015.

• $42.2bn of green bonds

were issued in 2015, four times 2013 total green bond issuance.

• As of October 31st , total

2016 issuance is nearly 50% greater than the 2015 total.

• As of October 2016,

$60.8bn green bonds were issued globally.

Green Bonds: A Growing Market

23

The green bond market expanded further in 2015, thanks to a wider range of issuers and types of green assets, as well as new geographies.

Green Bonds – A Diversified Issuer Base

• The UK, China, Germany, Japan, the Netherlands,

Norway and the US have shown significant growth in green bond market size last year.

• Overall Europe remains the region hosting most

green bonds, with nearly USD 18.4 billion issued in 2015

• 2015 saw a wider range of issuers and types of

green projects or assets. There was a widening

• f the type of projects financed by green bonds

with more proceeds leveraged for other green sectors outside of the renewable energy space, in particular low carbon transport and sustainable water. Green Bond Project Breakdown by Type (%)

9%

6%

13%

20%

46%

4%

2%

• bonds. US surpassed

United States

China $1.0bn

24

Green Bonds Characteristics

Source: Climate Bonds Initiative

43% of the bonds outstanding fall into the AAA credit rating band, primarily due to large development banks such as the World Bank, IFC and the EIB This is due to the dominance within the climate-aligned universe of large state-backed entities in the retail sector where investment horizons are long. This is in contrast to the climate-aligned bond market, where the currency spread is more balanced and includes a greater number of EM currencies. There are 25 currencies represented in the labelled green bond market. Bonds that have received an external review make up approximately 60% of the labelled green bond market. External reviews play an important role in the market and could be reinforced further with more consistent standards.

25

LSEG is a partner exchange of the United Nations Sustainable Stock Exchanges (SSE) initiative. London Stock Exchange Group’s activity in green financing is focussed

• n two key areas: fixed income

products and information services/indices. Through a range of new initiatives, LSEG intends to broaden its offering and support London in becoming the preferred listing venue for debt and equity Low Carbon Economy (LCE) financial instruments. Through its FTSE Russell business, LSEG is looking at further

• pportunities to increase

transparency in the green bond market, by providing issuers with a more efficient tool to report on sustainable initiatives, and offering investors a comprehensive product to assess a wide range of financial instruments against an innovative Low Carbon Economy (LCE) framework.

LSEG and Green Financing

• In 2015, 12 green bonds were listed on LSE – this

translated to a 14.5% market share of total green bond

• n EEA exchanges.
• London Stock Exchange has launched a range of

dedicated ‘green bond’ segments, offering issuers a flexible range of market models, covering both Regulated Market (RM) and MTF segments, comprising retail and wholesale, and offering the choice of trade reporting, end-

• f-day and continuous quoting.
• No other global exchange has such a comprehensive

specialist offering for green bonds.

• Issuers can benefit from the additional transparency of

secondary market trading and global reach of the London markets. "Together with the London Stock Exchange, UNEP and the Cambridge Institute for Sustainability Leadership, we hope to impress upon you London's commitment to build on existing market activity to ensure that green finance sits right at the very top of the financial industry's agenda.“,

Mark Boleat, Policy Chairman City of London

… raising a combined

$10.5bn 40

Green bonds …in 7 currencies

26

2007 2012 2014 2015 2016

LSE is a recognised supporter of the Green Bond market and has established strong relationships with key market participants

Green Bonds Key Milestones

July 2012

LSE’s First Green bond listed by Nordic Investment Bank

January 2016

LSEG joins the Green Infrastructure Investment Coalition (GIIC) launched at COP21

May 2014

LSE joins UN’s Sustainable Stock Exchanges (SSE) initiative

April 2015

TfL’s debut Green Bond

June 2015

LSE expands range of dedicated Green bond segments

January 2016

LSEG joins the City of London's Green Finance Initiative

November 2015

LSE becomes an Observer to the internationally- recognised ICMA Green Bond Principles guidelines

October 2015

First Green RMB bond for ABC and largest Green RMB bond listed on LSE to date

March 2014

First offshore RMB Green bond by a multilateral

August 2015

First offshore INR Green bond

27

April 2016

LSE becomes first global exchange to join the Climate Bonds Partnership Program

June 2007

European Investment Bank issues the first “Climate Awareness” bond tracking the performance of the FTSE4Good Environmental Leaders 40 index

November 2016

Bank of China becomes first Chinese entity to issue a Green Covered bond

Green bonds have the same regulatory status of equivalent “non-green” bonds and can normally be issued through standard base prospectuses To admit green bonds to London Stock Exchange’s dedicated Green Bond segments, issuers are required to provide the Exchange with the relevant certification of the ‘green’ nature of the bonds

Green Bond Admission Criteria

Issuers admitting bonds to the Green Bond segments on London Stock Exchange must provide proof

• f an external review* to confirm the “green” nature of the instruments and a written confirmation

(email confirmation would suffice) that the entity appointed to conduct the external review meets the following criteria:

• Be independent of the entity issuing the bond, its directors, senior management and advisers. In

particular, the organisation providing the external review must not be a subsidiary or owner, either in full or in part, of the entity issuing the bond

• Be remunerated in a way that prevents any conflicts of interests arising as a result of the fee

structure

• Be an entity specialising in assessing the framework of the bonds’ environmental objectives,

with sufficient financial and market-specific expertise to perform a comprehensive assessment of the use of proceeds. Such expertise could be demonstrated for example by:  Affiliation with relevant and widely recognized industry bodies; or  Significant and appropriate previous experience in providing external reviews on green bonds

* The external review could take the form of the following:

• Consultant’s Review / Second Opinion
• Verification
• Third Party certification
• Green Bond Rating (separate from an issuer’s overall ESG rating)

28

For SSA issuers admitting on the basis of self-certified impact reporting, they must have in place a formal reporting methodology, and must provide written confirmation that this is based on certain principles as outlined

Self-Certification – Impact Reporting

Impact Reporting: the issuer should illustrate the expected environmental and/or climate impact of each eligible project to which green bond proceeds have been allocated using, for example, a number of core indicators such as:

 Energy Efficiency: annual energy savings, reduction in greenhouse gas

emissions

 Renewable Energy: renewable energy produced, capacity of renewable

energy plant constructed, etc.

29

Green Bond Case Studies

30

Bank of China MuniFin Development Bank of Japan Agricultural Bank of China IFC Shanks Transport for London Transaction Details Issue Date 09 Nov 2016 04 Oct 2016 21 Oct 2015 20 Oct 2015 10 Aug 2015 / 17 Jun 2014 16 Jun 2015 24 Apr 2015 Issue Size USD 500mn USD 500mn EUR 300mn USD 400mn / USD 500mn / RMB 600mn INR 3.15bn / RMB 500mn EUR 100mn GBP 400mn Coupon 1.875% 1.375% 0.375% 2.125% / 2.75% / 4.15% 6.45% / 2.00% 3.65% 2.125% (G10yr+57bp) Maturity 3 years 5 year 4 year 3 year / 5 year / 2 year 5 year / 3 year 7 year 10 year Issuer Profile Rating Aa3 AA+ / Aa1 A1/A A1/A AAA/Aaa n/a AA+/Aa2/AA

Recent Green Bond Issuance

31

Company Details

Company Bank of China Rating Aa3 Sector Banks Market PSM

Transaction Details

Issue Date 09 Nov 2016 Issue Size USD 500 million Coupon 1.875% Maturity 3 years

Company Profile

• Bank of China is one of the largest state-owned

commercial banks.

• In the past year China has quickly become the biggest

market for green debt globally, with Chinese borrowers having raised 39.6% of the $59 billion sold in green debt so far this year, compared to just 3.6% in 2015.

• The issue was inspired by the work of the G20, which

has seen China and UK work together on a green finance initiative.

• The structure of both cross-border financing and cross-

border guarantee introduces foreign capital to high- quality domestic green projects.

• This bond’s rating is the same as the Chinese

sovereign one; the highest international rating of all Chinese green bonds in history.

Debt issuance story

• The issue was over 1.8 times oversubscribed with a

final order book of $900 million.

• The bond was priced 95 bps tighter than BoC's senior

unsecured debt with the same tenor.

• The proceeds will be used to fund eligible green

projects in renewable energy, pollution prevention and control, clean transportation and sustainable water management.

• The deal is backed by a portfolio of domestic Chinese

climate-aligned bonds which are components of the China Bond China Climate-Aligned Bond Index.

• The notes offer noteholders dual recourse to both

Bank of China London Branch and the collateral bond assets.

• The bond was externally reviewed by EY.
• Joint leads: Barclays, BAML, CCB, Crédit Agricole

CIB, Société Générale and Standard Chartered.

Bank of China issues world’s first green covered bond with dual recourse

Distribution by Investor Type

Banks 73% Asset Managers 17% Insurers 5% Private Banks 4% Sovereign Wealth Funds 1%

Geographical Distribution

Asia 72% Europe 28%

32

“The UK and China are working together to develop the global green bond market, which drives the greening of the global financial system. “ Sean Kidney, CEO Climate Bonds Initiative

Company Details

Company International Finance Corporation (part of World Bank Group) Rating AAA/Aaa Sector Supranational Market Main Market

Transaction Details

Issue Date 04 Nov 2016 Issue Size USD 152 million Yield at issue 1.546% Maturity 5 years

Company profile

• IFC is one of the world’s largest financiers of

climate-smart projects for developing countries, investing about $19 billion in long-term financing

• ver the last decade for that purpose.
• The bond was developed with BHP Billiton and

Conservation International. BHP is a global mining, metals, and petroleum company. Conservation International is a global non profit environmental organization.

• “IFC’s Forests Bond demonstrates the power of

innovative capital-market mechanisms to unlock private sector funds for forest protection.” Jingdong Hua, IFC Vice President

Debt issuance story

• This is world’s first-of-its-kind bond giving

investors choice between a cash or carbon-credit

• coupon. Investors choosing the latter can retire

them to offset corporate greenhouse gas emissions, or sell them on the carbon market.

• IFC will buy carbon credits from the Kasigau

Corridor REDD project in Kenya with BHP Billiton providing a price-support mechanism.

• The proceeds will be used to support private

sector development and prevent deforestation in developing countries.

• Joint leads: BAML, BNP Paribas, JP Morgan.

Using innovative capital-market mechanisms to prevent deforestation in developing countries

33 Key Investors

CalSTRS Californian pensions giant Treehouse Investments Emerging Markets-focused investor TIAA-CREF Teachers’ pension fund QBE Insurance

Company Details

Company Municipality Finance Plc Rating AA+ / Aa1 Sector Utilities Market Main Market

Transaction Details

Issue Date 04 Oct 2016 Issue Size USD 500 million Coupon 1.375% Maturity 5 years

Company Profile

• Municipality Finance is the leading provider of

financial services to Finland’s local government and public housing sectors. It is owned by the Government of Finland, Finnish municipalities and the public sector pension fund.

• MuniFin acts a debt aggregator for municipalities in

Finland enabling small municipalities to access low cost capital through the bond market despite their small size.

• The size of each bond is based on the finance

requirements of each municipality but bonds are not ABS’s, just a regular corporate bond backed by. The result is very high rated bonds and low cost of capital for small municipalities.

Debt issuance story

• MuniFin’s issue is Finland’s first ever green bond and

was 1.2 times oversubscribed with a final order book

• f over $600 million.
• 80% of the proceeds will go to climate change

mitigation and adaptation projects and 20% to environmental management projects.

• Eligible projects are identified in MuniFin’s Green

Framework, drafted in accordance with ICMA’s GBPs, the Centre for International Climate and Environmental Research, Oslo and in collaboration with the Stockholm Environment Institute. CICERO provided the external review.

• Joint Leads: BAML, HSBC, SEB and Crédit Agricole.

Finland’s first Green Bond opens the way for the transition to low carbon and climate resilient growth

Geographical Distribution

Europe 42% Americas 29% Nordic Region 22% Asia / Pacific 7%

Distribution by Investor

Banks 36% Central Banks / Official Institutions 32% Asset Managers 21% Insurers / Pension Funds 11%

34

Company Details

Company SBAB Bank AB Market Main Market Sector Financials Rating A2/A

Transaction Details

Issue Date 23 June 2016 Issue Size SEK 1 billion / 1 billion Yield at issue 1.048 / FLT Maturity 5 years / 5 years

Company profile

• SBAB is a 100% State owned Swedish mortgage

bank, concentrating on providing mortgages specifically to the retail segment in Sweden. SBAB’s market share continues to increase and the SBAB group is currently the 5th largest mortgage provider in Sweden. The services SBAB

• ffers are provided mainly over the internet but

also include a call center in Karlstad, Sweden, which helps us to run a very efficient set up.

• “Issuing a Green Bond provides an opportunity for

us to diversify our investor base and further deepen investor dialogue regarding how we jointly can promote sustainability efforts and development in the financial and capital markets.”

Debt issuance story

• Sole arranger: Skandinaviska Enskilda Banken

AB

• The funds raised by SBAB will exclusively be used

to finance or refinance properties that fullfi a number of energy-efficiency criteria or alternatively hold a selectively defined environmental certification.

• The issue was oversubscribed as the book grew

steadily throughout the book-building period and priced 5bps tighter than their normal non-green bonds.

Using Green bond to finance properties that fulfil energy-efficiency criteria

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Company Details

Company Development Bank of Japan Rating A1/A Sector Government Market PSM

Transaction Details

Issue Date 21 Oct 2015 Issue Size EUR 300 million Yield at issue 0.375% Maturity 4 years

Press Release

• “DBJ successfully took in new investors by

broadening the asset classed applicable for the new issue’s use of proceeds.” Goldman Sachs.

• “Following the issuance of the DBJ’s first Green Bond

last year, this inaugural Euro denominated sustainability bond has positioned the bank as a clear leader in the rapidly growing SRI fixed income

• market. At the same time it enabled the bank to reach

a more diversified investor base including SRI focused investors” BAML.

• “The transaction attracted both new and existing DBJ

green and sustainability investors, all while achieving a competitive pricing outcome” JPMorgan.

Debt issuance story

• This bond is the first sustainability bond issued

by a Japanese issuer. DBJ has expanded the use of proceeds to include DBJ Environmentally Rated Loan Program in addition to DBJ Green Building Certification.

• On 7 Oct 2014, DBJ issued its first Green Bond
• n London Stock Exchange.
• Joint Leads: Merrill Lynch International, Morgan

Stanley & Co. International, JPMorgan Securities, Goldman Sachs International.

Using sustainability bond issuance to tap into ESG investors liquidity pool

Distribution by Investor Type

Banks 61% Asset Manager 13% Insurance 11% Central Banks 7% Others 8%

Geographical Distribution

EMEA 97% US Offshore 3%

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Company Details

Company Agricultural Bank of China Rating A1/A Sector Financials Market PSM

Transaction Details

Issue Date 20 Oct 2015 Issue Size $400 million / $500 million / RMB 600 million Yield at issue 2.125% / 2.75% / 4.15% Maturity 3 years / 5 years / 2 years

Company profile

• Agricultural Bank of China is one of the top four

commercial banks in China. ABC is one of the first standing members of the green finance committee

• f China Society for Finance and Banking. In 2013,

ABC signed the green credit commitment along with

• ther financial institutions, and formulated green

credit standards and protocols.

• “The successful issuance and listing of ABC’s green

bonds on the London Stock Exchange not only fulfils

• ur ambition that was announced as part of the

policy outcomes of the latest UK-China Economic and Financial Dialogue, but also manifests the close and fruitful cooperation between Chinese and UK financial institutions on green finance, climate change and adaption initiatives.”

Debt issuance story

• Based on the green bond management framework,

the proceeds from the offering will support renewable energy, energy efficiency, sustainable waste management, sustainable use of land, clean transportation and sustainable water management.

• The listing is the first international Green Bond

issue by a Chinese bank, as well as the first listed Green RMB bond for ABC on the London Stock Exchange.

• Joint Leads: ABC, BAML, Barclays, GS HSBC,

JPM, MS, SCB, Wells Fargo.

Using Green offshore dual currency bond issuance to finance green projects

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Company Details

Company International Finance Corporation (part of World Bank Group) Rating AAA/Aaa Sector Supranational Market Main Market

Transaction Details

Issue Date 10 Aug 2015 Issue Size INR 3.15billion Yield at issue 6.45% Maturity 5 years

Company profile

• IFC is one of the world’s largest financiers of

climate-smart projects for developing countries, investing about $11 billion in long-term financing

• ver the last decade for renewable power,

energy efficiency, sustainable agriculture, green buildings and private sector adaptation to climate change.

• “Addressing climate change is a priority for IFC in
• India. IFC’s green Masala bond demonstrates

the powerful role of capital markets in mobilizing savings for climate finance—and a listing in London allows us to attract the widest possible range of international investors. Adding the rupee as a new green bond currency also supports our goals to strengthen this important asset class.”

Debt issuance story

• Proceeds from the offering used to finance a

green bond issued by Yes Bank, one of India’s largest commercial banks. Yes Bank invested the proceeds of its bond in renewable energy and energy efficiency projects, mainly in the solar and wind sectors.

• Under its $3 billion offshore rupee Masala bond

program, IFC has issued bonds worth over 103 billion rupees ($1.66 billion) in a range of tenors, building a triple-A yield curve and attracting new investors to the London offshore rupee market.

• Sole arranger: JP Morgan.

Using Green offshore rupee bond issuance to finance Indian infrastructure

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Company Details

Company World Bank Rating AAA/Aaa/AAA Sector Supranational Market MOT (Borsa Italiana)

Transaction Details

Issue Date 29 Jun 2015 Issue Size $84 million Coupon Linked to Ethical Equity Index Maturity 8 years

Company profile

• World Bank provides low-interest loans and grants

to developing countries. These support a wide array of investments in such areas as education, health, infrastructure, and environmental and natural resource management.

• Established in 1944, the World Bank Group is

headquartered in Washington, D.C and employs more than 10,000 employees worldwide.

• Since its first green bond launched in 2008, the

World Bank has issued 100 green bonds in 18 currencies, totalling over USD 8.4 billion equivalent.

Debt issuance story

• The bonds were distributed to Italian retail

investors through a network of 16 retail banks and brokers.

• The issue is part of the World Bank’s Green

Growth Bond programme for issuance of retail instruments in the US and a number of European markets.

• Minimum denomination: $2000.
• Bond performance is fixed for the first two years

(1.75% coupon) and then linked to the performance of the Ethical Europe Equity Index. Redemption at maturity (100) guaranteed by the World Bank.

• Lead Manager: BNP Paribas.

Using Green Bonds to expand private investors product range

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Company Details

Company Shanks Group plc Rating n/a Sector Waste & Disposal Services Market Main Market (LSE)

Transaction Details

Issue Date 16 Jun 2015 Issue Size €100 million Yield at issue 3.65% Maturity 7 years

Company profile

• Shanks Group is a leading international waste to

product business.

• Company was founded in 1880 as a construction

company operating primarily in the West of Scotland under the name of Shanks & McEwan.

• Listed on London Stock Exchange’s Main Market

since 1988.

Debt issuance story

• Shanks is the first UK company to issue Green

Bonds in Euros and list them on LSE.

• The net proceeds of the issue will be used to

finance Shanks' ongoing programme of investment in sustainable infrastructure.

• Minimum Denomination: €1000.
• Lead Managers: BNP Paribas, KBC Bank.

Using Green Bond issuance to tap into retail investor liquidity

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Company Details

Company Transport for London Rating AA+/Aa2/AA Sector Government Market Main Market

Transaction Details

Issue Date 24 Apr 2015 Issue Size GBP 400 million Yield at issue 2.125% (G10yr+57bp) Maturity 10 years

Company profile

• Transport for London (TfL) is the owner and
• perator of the largest integrated transport

networks in Europe. TfL is a statutory corporation and is a functional body of the Greater London Authority (GLA).

• UK's leading public sector issuer of capital

markets debt after the UK Government's Debt Management Office with around £8.5bn of borrowings raised from a variety of sources and a further £4.5bn borrowing requirement up to 2021.

• TfL was the first UK corporate to issue sterling

denominated Green bonds.

Debt issuance story

• Third Party opinion provided by DNV GL.
• Proceeds will support the objectives of TfL’s

corporate environmental framework, which includes reducing air pollution in the city, improving natural resource management and preparing for potential climate change effects.

• Deutsche Bank also publicly announced that

will invest in the bond, which the Bank will hold within its Green Liquidity Portfolio.

• Joint Lead Managers: Deutsche Bank, Bank
• f America Merrill Lynch (BoAML).

Using Green bond issuance to finance green Railway projects

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Company Details

Company International Finance Corporation (part of World Bank Group) Rating AAA/Aaa Sector Supranational Market Main Market

Transaction Details

Issue Date 17 Jun 2014 Issue Size RMB 500 million Yield at issue 2.00% Maturity 3 years

Company profile

• IFC is one of the world’s largest financiers of

climate-smart projects for developing countries, investing about $11 billion in long-term financing

• ver the last decade for renewable power, energy

efficiency, sustainable agriculture, green buildings and private sector adaptation to climate change.

• “IFC is committed to supporting the development of

China’s capital markets, which are key to creating access to finance for the private sector and especially small and medium businesses. We will continue to seek opportunities to help deepen liquidity and extend the yield curve for offshore renminbi assets. The addition of the renminbi as a new green bond currency also supports our goals to strengthen this important asset class.”

Debt issuance story

• Proceeds from the offering to support projects to

reduce greenhouse gas emissions—for example, by rehabilitating power plants and transmission facilities, installing solar and wind power, and providing financing for technology that helps generate and use energy more efficiently.

• In March 2014, IFC became the first multilateral

institution to list renminbi-denominated bonds on LSE, raising 2 billion renminbi from international

• investors. IFC was also the first to set up a

program to regularly issue offshore renminbi- denominated discount notes.

• Sole arranger: HSBC.

Using Green offshore renminbi bond issuance to finance Chinese climate-friendly investments

42

Appendix (general slides)

43

Criteria Main Market

Security type Fixed Income Official list status Listed Regulated EU Regulated Sponsor / Nomad Not Required Corporate governance A Code Regulatory supervision UKLA Legislation LR/PD/TD/MAR/A&Ds Types of companies Large multinationals Premise Debt issuers seeking high profile listing Eligible investors Professional and retail

Main Market

Description  Flagship Market: The London Stock Exchange’s Main Market is the world’s most international market for the admission and trading of equity, debt and

• ther securities, providing access to Europe’s deepest capital pool

 Located at the heart of the world’s leading financial centre: The ideal home to over 2,600 debt issuers from 60 countries, including many of the world’s largest, most successful and most dynamic companies  High Profile Listing: Exposes debt securities to a wide audience of financial market participants, boosting the profile of the listing  High regulatory standards: Underpinned by London’s balanced and globally-respected standards of regulation and corporate governance, the Main Market represents a badge of quality for every company admitted to and traded on it and an aspiration for many companies worldwide  Broad range of eligible investors: The Main Market’s status as a listed and regulated market offers flexibility both to issuers and holders of debt finance. Its focus, therefore, is on the broadest range of institutional and retail investors  Liquidity: Offers a number of secondary market order-book solutions while providing access to London’s deep pool of international eurobond liquidity  Cost saving: Offers cost savings as London is the only major European listing venue with no annual fees to debt issuers

44

Criteria PSM

Security type Fixed Income Official list status Listed Regulated MTF Sponsor / Nomad Not Required Corporate governance Domestic Regulatory supervision UKLA Legislation LR/LP/MAR/A&Ds Types of companies Emerging Markets Premise Debt issuers using local GAAP Eligible investors Professional only

Description  Lighter Regulation: Outside scope of EU Prospectus and Transparency Directives  No EU Passport: Designed to meet financing needs of issuers who do not require EU passport  Alternative Accounting Standards: Offers alternative for issuers not wishing to prepare financial information to IFRS, and ability to report under national GAAP  Lower Denomination requirements: Distinction between wholesale and retail does not apply, which allows securities to be issued in denominations lower than €100K but under the wholesale regime  Lower disclosure requirements: Offers full listed status but with lower levels

• f disclosure and continuing obligations than what would be required on EU-

Regulated Main Market  Liquidity: Offers a number of secondary market order-book solutions while providing access to London’s deep pool of international eurobond liquidity  Cost saving: Offers cost savings as London is the only major European listing venue with no annual fees to debt issuers

Professional Securities Market

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UKLA Listing Requirements Checklist

LR 2 Required by LR17.2.1 Rule Description 2.2.1 (1) Applicant Duly incorporated The applicant must be validly established according to the relevant laws of its place 2.2.1 (2) Conformity with constitution The applicant must be operating in conformity with its constitution 2.2.2 (1) Conforms with law of place of constitution Securities must conform with the law of the applicant’s place 2.2.2 (2) Duly authorised Securities must be authorised according to the applicant’s constitution 2.2.2 (3) Statutory and other consents Securities must have necessary statutory or other consent 2.2.3 Admitted on Recognised Investment Exchange (RIE) Securities must be admitted to trading on a RIE market for listed securities 2.2.4 (1) Freely transferable The listed securities must be freely transferable 2.2.7 (1) Minimum market capitalisation The expected aggregate amount value of the securities must be at least £ 200,000 2.2.9 (1) Whole class to be listed If no securities of that class are already listed, the new securities class must relate to all securities of that class issued or proposed to be issued 2.2.10 (2)(a) Prospectus approved by FCA and published A prospectus must be approved by the FCA 2.2.10 (2)(b) Other EEA is Home Member State for the securities The relevant competent authority must supply the FCA with a certificate of approval, a copy of the prospectus as approved and a translation of the summary of the prospectus. 2.2.11 (2) Listing Particulars approved Listing particulars for the securities must have been approved by the FCA 2.2.12 (1) Convertible into listed securities Convertible securities may be admitted to listing only if the securities into which they are convertible are listed securities 2.2.12 (2) Convertible into recognised market securities Convertible securities may be admitted to listing only if the securities into which they are convertible are securities listed on a regulated, regularly operating, recognised open market 46

Ongoing Obligations of Debt Issuers

London Stock Exchange’s Regulated Market (Main Market) – EEA Regulated The Professional Securities (PSM) (Unregulated Market) – Exchange Regulated Relevant legislation and rules Disclosure and Transparency Rules (DTR) Listing Rules (LR) Disclosure and Transparency Rules (DTR) Listing Rules (LR) Accounts Wholesale  Issuers with debt securities in denominations of EUR100,000 (or equivalent) and above do not have to comply with the periodic financial requirements set

• ut in the Transparency Directive (implemented by DTR 4).

 However, under LR 17.3.4, annual report and accounts must be approved and published within six months of the year end, and must be independently audited and prepared in accordance with the issuer’s national accounting standards or IAS.  No requirement to produce half-yearly reports. Retail  Annual reports must be prepared and published within four months of the year end and to be publicly available for at least five years (DTR 4.1.3 and 4.1.4).  Half-yearly reports must be prepared and published within two months of the period to which it relates and to be publicly available for at least five years (DTR 4.2.2).  The PSM does not distinguish between wholesale and retail issuers.  LR 17.3.4 requires Issuers to publish their annual report and accounts. These must be approved and published within six months of the year end, and must be independently audited and prepared in accordance with the issuer’s national accounting standards or IAS.  No requirement to produce half-yearly reports. Inside Information  If there is any inside information that directly concerns the issuer, the issuer must disclose such information as soon as possible through a Regulated Information Service (RIS) to the market (DTR 2.2).  The issuer, and those acting for it must prepare and keep up-to-date lists of individuals working for them with access to inside information. The insider list must name each insider, state the reasons for the insider’s inclusion on the list, and include the date of creation and update the list (DTR 2.8).  Issuers are required to comply with DTR 2, which details with disclosure and control of information by issuers, in the same way as an issuer with securities admitted to trading on a Regulated Market (LR 17.3.9).  If there is any inside information that directly concerns the issuer, the issuer must disclose such information as soon as possible through a RIS to the market (DTR 2.2)  The issuer, and those acting for it must prepare and keep up-to-date lists of individuals working for them with access to inside information. The insider list must name each insider, state the reasons for the insider’s inclusion on the list, and include the date of creation and update the list (DTR 2.8).

47

Ongoing Obligations of Debt Issuers (cont’d)

London Stock Exchange’s Regulated Market (Main Market) – EEA Regulated The Professional Securities (PSM) (Unregulated Market) – Exchange Regulated Dissemination

• f Information

 The issuer is required to comply with DTR 6.3, which dictates how information should be disseminated to the market.  Information required to be disclosed under the DTRs must fall within the definition of “regulated information”.  Regulated information must be disseminated to as wide a public as possible and simultaneously in the Home Member State and other EEA states.  In effect, this rule obliges an issuer to make use of a RIS and adhere to other minimum requirements when disclosing, for example, inside information.  An annual report is not required to be communicated to the media in full unedited text unless it is the type that would be required to be disseminated in half-yearly financial report.  Under LR 17.2.9B, the issuer is required to comply with DTR 6.3, which dictates how much information should be disseminated to the market.  Information required to be disclosured under the DTRs must fall within the definition of “regulated information”.  Regulated Information must be disseminated to as wide a public as possible and simultaneously in the Home Member State and other EEA states.  In effect, this rule obliges an issuer to make use of a RIS and adhere to other minimum requirements when disclosing, for example, inside information. Other relevant continuing

• bligations

 Ensure equal treatment for all holders of the debt securities ranking pari passu in respect of all rights attaching to the debt securities (DTR 6.1.3).  Make public without delay any change in the rights of holders of the debt securities including changes in the terms and conditions of the debt securities which could indirectly affect those rights, resulting in particular from a change in loan terms or in interest rates (DTR 6.1.10).  Publish notices/distribute circulars concerning bondholder meetings, payment

• f interest, exercise of conversion, exchange, subscription or cancellation

rights and repayment (DTR 6.1.14).  Make public without delay any new loan issues and in particular of any guarantee or security in respect thereof (DTR 6.1.11).  Ensure that all the necessary facilities and information are available publicly to enable holders of the debt securities to exercise their rights (DTR 6.1.4).  Where the issuer proposes to amend its instrument of incorporation or statutes, it shall provide the draft amendment to the FSA. Such submission shall be effected without delay and must, at the latest, be provided on the date

• f the general meeting called on to vote on, or be informed of, the amendment

(DTR 6.1.2).  All holders of debt securities must be given equal treatment in respect of rights.  Any changes to the rights must be disclosed to the public without delay.

48

Appendix (data sets)

49

ISIN Issuer Name Coupon(%) Currency Amount Raised Issue Date Maturity Date Market XS1512929842 Bank of China 1.875 USD 500,000,000 09/11/2016 09/11/2019 PSM XS1498532271 MuniFin 1.375 USD 500,000,000 04/10/2016 21/09/2021 Main Market XS1494406074 Nordic Investment Bank 0.5 SEK 1,500,000,000 22/09/2016 22/09/2023 Main Market XS1467374473 NTPC Ltd 7.375 INR 20,000,000,000 10/08/2016 10/08/2021 PSM US29874QCW24 European Bank for Reconstruction 0.875 USD 650,000,000 20/07/2016 22/07/2019 Main Market XS1436518606 SBAB Bank AB 1.048 SEK 1,000,000,000 23/06/2016 23/06/2021 Main Market XS1436728916 SBAB Bank AB 0.471 SEK 1,000,000,000 23/06/2016 23/06/2021 Main Market XS1433082861 City of Gothenburg Sweden 0.885 SEK 1,000,000,000 15/06/2016 15/06/2022 Main Market XS1431730388 Nordic Investment Bank 0.125 EUR 500,000,000 10/06/2016 10/06/2024 Main Market XS1410341389 Axis Bank Ltd/Dubai 2.875 USD 500,000,000 01/06/2016 01/06/2021 PSM XS1420355023 Stockholms Lans Landsting 0.75 SEK 15,000,000,000 27/05/2016 27/09/2021 Main Market XS1402169848 International Finance Corp 4.75 MXN 500,000,000 29/04/2016 29/04/2021 Main Market US45950VHX73 International Finance Corp 2.125 USD 1,200,000,000 07/04/2016 07/04/2026 Main Market XS1347786797 Nordic Investment Bank 0.625 SEK 1,000,000,000 20/01/2016 20/01/2021 Main Market

Green Bonds on London Stock Exchange

Green Bonds Listed on London Stock Exchange dedicated Green Bond Segments and Sectors

50

ISIN Issuer Name Coupon(%) Currency Amount Raised Issue Date Maturity Date Segment US45950VHE92 International Finance Corp 1.25 USD 500,000,000 27/11/2015 27/11/2018 Main Market XS1309485701 Development Bank of Japan Inc 0.375 EUR 300,000,000 21/10/2015 21/10/2019 PSM XS1303791336 Agricultural Bank of China Ltd 2.75 USD 500,000,000 20/10/2015 20/10/2020 PSM XS1308276168 Agricultural Bank of China Ltd 2.125 USD 400,000,000 20/10/2015 20/10/2018 PSM HK0000270386 Agricultural Bank of China Ltd 4.15 CNY 600,000,000 20/10/2015 20/10/2017 PSM XS1292474282 Nordic Investment Bank 0.375 EUR 500,000,000 17/09/2015 19/09/2022 Main Market US45950VGQ32 International Finance Corp 6.45 INR 315,000,000,000 10/08/2015 10/08/2020 Main Market XS1253847815 City of Gothenburg Sweden 1.455 SEK 1,050,000,000 30/06/2015 30/06/2021 Main Market XS1238024035 Shanks Group PLC 3.65 EUR 100,000,000 16/06/2015 16/06/2022 Main Market XS1239582502 Stockholms Lans Landsting 1 SEK 15,000,000,000 28/05/2015 28/05/2021 Main Market XS1239582684 Stockholms Lans Landsting SEK 300,000,000 28/05/2015 28/05/2021 Main Market XS1222743061 Transport for London 2.125 GBP 400,000,000 24/04/2015 24/04/2025 Main Market XS1222727536 Nordic Investment Bank 0.155 SEK 1,000,000,000 23/04/2015 23/04/2020 Main Market XS1117504750 Development Bank of Japan Inc 0.25 EUR 250,000,000 07/10/2014 06/10/2017 PSM XS1080036939 International Finance Corp 2 CNY 500,000,000 26/06/2014 26/06/2017 Main Market XS1073488675 City of Gothenburg Sweden 2 SEK 310,000,000 03/06/2014 03/06/2020 Main Market

Green Bonds on London Stock Exchange

Green Bonds Listed on London Stock Exchange dedicated Green Bond Segments and Sectors

51

ISIN Issuer Name Coupon(%) Currency Amount Raised Issue Date Maturity Date Segment XS1073521988 City of Gothenburg Sweden SEK 1,500,000,000 03/06/2014 03/06/2020 Main Market XS1069348941 Stockholms Lans Landsting SEK 870,000,000 19/05/2014 19/05/2020 Main Market XS1069349089 Stockholms Lans Landsting 2.125 SEK 230,000,000 19/05/2014 19/05/2020 Main Market XS1048655184 Unilever PLC 2 GBP 250,000,000 26/03/2014 19/12/2018 Main Market XS1031495929 Nordic Investment Bank EUR 40,000,000 11/02/2014 11/02/2019 Main Market XS0976165828 City of Gothenburg Sweden SEK 250,000,000 03/10/2013 03/10/2019 Main Market XS0976166719 City of Gothenburg Sweden 2.915 SEK 250,000,000 03/10/2013 03/10/2019 Main Market XS0975173633 Nordic Investment Bank 2.413 SEK 500,000,000 27/09/2013 27/09/2018 Main Market US29874QCN25 European Bank for Reconstruction 1.625 USD 250,000,000 17/09/2013 10/04/2018 Main Market XS0824127277 Nordic Investment Bank 2.75 SEK 500,000,000 07/09/2012 07/09/2032 Main Market

Green Bonds on London Stock Exchange

Green Bonds Listed on London Stock Exchange dedicated Green Bond Segments and Sectors

52

ISIN Issuer Description Coupon (%) Currency of Issue Issue Date Maturity Market XS1233613188 IBRD Notes Linked to the Ethical Europe Equity Index due July 5, 2023 - Green Growth Bonds Floating – Index linked USD 28/07/2015 05/07/2023 MOT XS1198278175 EIB 8.50 per cent. Climate Awareness Bonds due 27th March, 2019 8.5 TRY 27/02/2015 27/03/2019 MOT XS1107247725 EIB 1.75 per cent. Eurocooperation (Ecoop) Bonds due 15th September, 2045 1.75 EUR 09/08/2014 15/09/2045 MOT XS1247736793 EIB 0.875 per cent. Eurocooperation (Ecoop) Bonds due 13 September 2024 0.875 EUR 17/06/2015 13/09/2024 MOT XS1260085037 EIB 0.125 per cent. Eurocooperation (Ecoop) Bonds due 15 June 2020 0.125 EUR 14/07/2015 15/06/2020 MOT XS1183208328 EIB 1.00 per cent. Eurocooperation (Ecoop) Bonds due 14 March 2031 EUR 05/02/2015 14/03/2031 MOT XS1271698612 EIB 0.375 per cent. Eurocooperation (Ecoop) Bonds due 15 March 2022 0.375 EUR 08/05/2015 15/03/2022 MOT

Green Bonds listed on Borsa Italiana MOT markets

Green Bonds on Italian MOT

53

London Stock Exchange’s Fixed Income Team

Primary Markets Global Head of Fixed Income Pietro Poletto +39 02 7242 6243 Pietro.Poletto@borsaitaliana.it UK Head of Fixed Income Darko Hajdukovic +44 20 7797 3306 dhajdukovic@lseg.com Fixed Income Product Specialist Lillian Georgopoulou +44 20 7797 3482 egeorgopoulou@lseg.com Fixed Income Product Specialist Elena Chimonides +44 20 7797 1509 echimonides@lseg.com Secondary Markets Global Co-Heads of Equity, Funds, Fixed Income Pietro Poletto Brian Schwieger +39 02 7242 6243 +44 20 7797 3860 Pietro.Poletto@borsaitaliana.it BSchwieger@lseg.com

For further information refer to www.lseg.com

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Disclaimer

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