#1Nordea Green bond investor presentation February 2021#2Disclaimer 2 This presentation contains forward-looking statements that reflect management's current views with respect to certain future events and potential financial performance. Although Nordea believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors. Important factors that may cause such a difference for Nordea include, but are not limited to: (i) the macroeconomic development, (ii) change in the competitive climate, (iii) change in the regulatory environment and other government actions and (iv) change in interest rate and foreign exchange rate levels. This presentation does not imply that Nordea has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided. Nordea#33 10.0 Sustainability at Nordea Nordea#4Nordea's sustainability journey • PRI • UNEP FI Global compact Equator Principles CDP Excludes cluster munitions Annual CSR reporting . 2007 4 2008 Initiates engagement activities 2009 2010 • Own ESG method established • • Excludes investments companies involved Emerging STARS • EITI fund IIGCC Excludes investments in soft commodities 2011 2012 Swedish STARS fund Our ambition is to be acknowledged as a leading European bank in the transition towards a sustainable future in nuclear weapons Water engagement initiated Excludes companies 2013 2014 • • Nordic STARS fund ESG integrated in traditional analysis heavily involved in coal 2015 2016 Global STARS fund Systematic ESG screening of large • Enhanced weapon policy Fixed income STARS fund New corporate values framework Green bond framework . Inaugural green bond issuance Climate change position statement UNEP FI Principles for responsible banking • First sustainable finance conference • Green corporate loans • Green mortgages • Green car loans & leasing 2017 2018 Sustainable finance becomes a group function corporate customers • Group level Sustainability policy • Sector guideline defence industry . CHRB • BA sustainability leads . . • 2019 2020 Updated plan to fully integrate sustainability into the business strategy with quantitative 2030 objectives Joined Partnership for Carbon Accounting Financials (PCAF) & founding member Net-Zero Asset Manager Initiative New sector guidelines released New partnerships and tools created helping customers make more sustainable choices Nordea#5Next step in our sustainability journey: elevated ambition level and enhanced customer support Our purpose is the starting point As a leading bank we are well positioned to drive change SUSTAINABLE GOALS DEVELOPMENT 17 GOALS TO TRANSFORM OUR WORLD Together, we lead the way, enabling dreams and everyday aspirations for a greater good PRINCIPLES FOR RESPONSIBLE BANKING COLLECTIVE COMMITMENT TO CLIMATE ACTION UNEP PRINCIPLES FOR FINANCE RESPONSIBLE INITIATIVE BANKING UNEP PRINCIPLES FOR NTATIVE BANKING THE NET-ZERO ASSET OWNER ALLIANCE FINANCE UNEP INITIATIVE Sustainability integrated into business plans across Group Savings and lending offerings Culture and people processes Procurement Risk management Funding Targets for all ESG pillars - including customer activities and our own direct impact Medium-term (2023) targets for all units, covering ESG funds, green mortgages, green bonds, sector policies, etc. Focus on incentivising customers to make choices which have a positive impact and supporting their transition to more sustainable banking Targets for our activities, including climate, social and governance areas, and financial strength • Our long-term climate objectives By 2030 reduce carbon emissions from our lending and investment portfolios by 40-50%* and achieve net zero emissions by 2050 at the latest By 2030 reduce carbon emissions from our internal operations by >50%* and deliver net positive carbon contribution (through off- setting) 5 * Baseline year 2019 Nordea#6A strong sustainability governance Board Operations and Compliance Committee Board committee established 2017 Signatories to international conventions UNEP FINANCE INITIATIVE EQUATOR PRINCIPLES GLOBAL UN GLOB PRI COMPACT Principles for Responsible Investment United Nations Global Compact Nordea also follows the United Nations' Universal Declaration of Human Rights, ILO- conventions and the OECD Guidelines for Multinational Enterprises in our operations and business. 6 Group Executive Management CEO decides on strategic sustainability direction and focus areas including plans, targets and KPIs Business Ethics and Values Committee Decision-making committee Sustainability Committee Operational sub-committee to Business Ethics and Values Committee Group Sustainability Centre of Excellence regarding sustainability working for the overall benefit of Nordea and its customers Personal Banking Business Banking Asset & Wealth Management Large Corporates & Institutions Group Functions Nordea#7Selected Polices & Publications 7 Nordea Nordea Policies Nordea Code of Conduct Sustainability Policy . Nordea's Code of Conduct Sustainability Policy Responsible investment policy Responsible investment policy Nordea Tax Policies Nordeo Nordea Sector Guideline for the Fossil Fuels Industry Nordea Nordea Sector Guideline The Defence Industry Nordea Nordea Position Statement on Climate Change Nordea Nordea Sector Guideline for the Shipping Industry Nordea Nordea Sector Guideline for the Gambling Industry Nordea Nordea Sustainability Repor 2017 Sustainable Finance port 2017 110 32 15 19 ERABAD'S ACEUTICAL ON CRISIS: IMPACTS OF PHARMACEUTICAL POLLUTION ON COMMUNITIES TENVRONMENT IN INDIA Position statements & sector guidelines • Position Statement on Climate Change • Fossil fuels industry • Defence industry Shipping industry • Gambling industry Nordea Nordea ESG at al Nordea Sustainable financ Thera enable bass Reports & Brochures Annual Sustainability Reports Annual Responsible Investment Reports Annual Green Bond Reports Thematic engagement reports Informative brochures e.g. ESG All of these, and additional, documents can be found at Nordea.com /sustainability Nordea#8Sustainability focus across the group Sustainability business development 2020 Number of customers that have been advised in savings where sustainability preferences have been considered 242,000 In Q1-Q4 2020 Total AuM in ESG products EUR 73bn In Q4 2020 +16% Q3/Q4 2020 Net volumes sustainable savings EUR 1.2bn in Q1-Q4 2020 Mortgages with green collaterals, volume EUR 352m In Q4 2020 +22% *** Q3/Q4 2020 Sustainability ratings ISS ESG‣ Company Rating: C (A+ to D-)* 8 * Highest rating within sector is C+ ** Acknowledgements for our sustainability work • • • . Best ESG process (CFI.co) Corporate Knights (top 100) Nordea Asset Management in the top 10 list of best-selling asset managers within sustainable funds (Morningstar) and won the 'ESG engagement initiative of the year' prize in the 2020 Sustainable Investment Awards Nordea funds received high rankings in the responsibility assessment in a responsible investment report by the UN . Constituent of the FTSE4Good Index Series FTSE4Good Highlights 2020 • • Updated plan to fully integrate sustainability into the business strategy with the objective to achieve net zero emissions by 2050 at the latest Joined Partnership for Carbon Accounting Financials (PCAF) & founding member Net-Zero Asset Manager Initiative New tool for comparing sustainability footprint of investment portfolios Launched energy-saving loan in Denmark • Upgraded MSCI rating (AA) SUSTAINALYTICS ESG Score: 21.9 (0 to 100)** MSCI ESG Rating: AA (AAA to CCC) Nordea Lower score represents lower ESG risk (scale has changed, previously the other way around) *** Green mortgages in Sweden, Finland and Norway. Green loans in Nordea Kredit for corporate customers excluded#9Sustainable banking - inspire and enable our customers to make sustainable choices 9 Financing Green and sustainability bonds Nordea is fully committed to making the financial sector more sustainable Offering Investments Star funds Green corporate loans Climate & Environmental Fund Sustainability linked loans Green mortgages Advice Green bond issuance Advice on ESG to issuers and investors • Sustainable selection model portfolios Leading green finance framework advisory Global Impact Fund Green car loans & leasing All funds are negatively screened Risk management Commitments Board Operations and Sustainability Committee and Sustainability and Ethics Committee Group Board Directive on Risk includes ESG and ESG Risk Appetite Statement Group wide thematic and sector guidelines. Specific policies for investments and sustainable bonds Task Force on ECB expectations • • • • Co-Founders of UNEP FI Principles for Responsible Banking Founding members of Collective Commitment to Climate Action Founding member of Net-Zero Asset Owner Alliance (Life & Pensions) Founding member Net-Zero Asset Manager Initiative Joined Partnership for Carbon Accounting Financials (PCAF) Founding member of the Poseidon Principles for the shipping industry Contributing to society's goals through climate action, social impact and strong governance#10ESG at Nordea 10 Dedicated ESG teams Nordea continuously assess and evaluate transformative themes and areas which we believe shape the future landscape of businesses, since social and technology change as well as climate change and other environmental issues impact business models. Nordea have two dedicated ESG teams to support the organization with research and analysis based on the Nordea ESG methodology. One team works within responsible investments and the other within lending and financing. We underpin our approach with externally sourced ESG research and ratings. This provides coverage of over 4,000 companies globally both in terms of their practices and tracking controversial issues. . • ESG analysis integrated into investments Nordea bases its investment approach on internationally recognized principles for sustainable investment and active ownership. Nordea has developed its policies, procedures and investment products to ensure that the companies we invest in all live up to various criteria of sound environmental, social and governance performance. Nordea has developed an internal ESG database available to all investment professionals. This way we assure that investment and portfolio development decisions are based on a fuller set of information - key factors to improve risk management and thereby risk-adjusted returns for our clients. After years of dedicated work with ESG analysis, Nordea has extensive experience in sustainable investments. We believe that by engaging and investing in ambitious companies, we can make a considerable difference; selecting companies with high sustainability performance and potential of generating economic value with low risk for our clients. . ESG analysis integrated into financing Nordea has built up a strong in-house ESG analysis team that supports our credit analysts and client executives to integrate ESG aspects in financing. Nordea is committed to engaging with customers on ESG matters and to understanding the challenges and opportunities customers have in their respective businesses and industries. The ESG analysis conducted in relation to our customers concludes in an ESG risk rating which is included in credit memorandums. In total, we have five ESG risk categories, ranging from low to high risk. Companies assigned a high ESG risk are escalated to a group-level credit committee which can, if deemed necessary, consult our Business Ethics and Values Committee (BEVC) - a committee that has overall responsibility for conduct and sustainability in Nordea. For companies rated in the highest risk category, long-term financing is typically offered only on specific terms. Nordea#1111 Nordea Green Bonds Nordea#12Nordea rationale for issuing Green Bonds Sustainability is not only the right thing to do; it also mitigates risk and is financially smart Issuing Green Bonds... ...supports one of the most important aspects of sustainability at Nordea, namely conducting sustainable business: ✓ Enables a connection between sustainable lending to customers and dedicated investor demand Builds a more sustainable credit portfolio ...is a natural step in the process to reach Nordea's long-term sustainability targets: ✓ Manage Nordea's indirect impact to fight climate change ✓ Integrate sustainability in all policies, processes and products ...is well aligned with Nordea's Key Principles to preserve market capacity: ✓ Seeking diversification of investor base and product types ✓ Maintaining a proactive behaviour Sustainable debt market development (USDbn) 732.1 Sustainability-linked bonds 565.5 Sustainability-linked loans ■Green loans Issuance of sustainable debt set record, over USD 700bn in 2020 Issuance ($ billion) 800.0 700.0 600.0 500.0 400.0 309.3 Social bonds 300.0 237.9 200.0 145.8 Sustainability bonds 85.1 100.0 64.5 26.6 Green bonds 0.0 2013 2014 2015 2016 2017 2018 2019 2020 Global sustainable debt annual issuance, 2013-2020 SOURCE: BLOOMBERGNEF, BLOOMBERG L.P. 12 Source: BloombergNEF, Bloomberg L.P. Nordea#13Nordea Green Bonds issuance highlights The transactions combine Nordea's strong credit quality and a pan Nordic portfolio of Green Assets Summary . • • • Nordea has issued two senior unsecured green bonds (EUR 500m 5Y and EUR 750m 7Y) with a focus mainly on Green Buildings and Renewable Energy Net proceeds are used to (re)finance Green Bond Assets that have been selected through the Nordea Green Bond Framework Nordea adheres to the latest edition of the Green Bond Principles (June, 2018)*, which provides • • Issuer guidance on key components involved in a credible Green Bond setup Transparency to investors through availability of relevant information Assistance to underwriters by moving the market towards standard disclosures ISS ESG has provided a Second Party Opinion and made an annual re-assessment of the sustainability quality of the bonds including Nordea's Green Bond Framework, Green Bond Asset Portfolio and Nordea's Sustainability performance • "The overall sustainability quality of the asset pool in terms of sustainability benefits, risk avoidance and minimisation is good based upon the ISS ESG Green Bond KPIs." Nordea Green Bond Framework** ISS ESG Sets the basis for the identification, selection, verification and reporting of the sustainable financing that is eligible for being financed by proceeds of the Green Bonds issued by Nordea and the management of such proceeds 13 • Based on the Green Bond Principles and externally reviewed by ISS ESG Use of Proceeds Selection and Evaluation Management of Proceeds of Green Bond Assets Reporting External Review * Published by the International Capital Markets Association Available on Nordea's website Nordea#14Use of Proceeds Comments • . • Net proceeds of Green Bonds issued by Nordea will be used for (re)financing of assets within the eligible Green Bond Asset Categories Green Bond Asset Categories have been identified by Nordea as aiming to increase positive or reduce negative impact on the environment. The Green Bond Framework allows for a broad range of categories (see table for categories included in current Green Bond Asset Portfolio) Assets that have been verified by an external verifier to be consistent with the Green Bond Principles and the verifier's own criteria, will be included in the Green Bond Asset Portfolio Any addition to the Green Bond Asset Portfolio is subject to the verification by the external verifier Net proceeds of any Nordea Green Bond shall NOT be used towards financing of: Nuclear or fossil fuel energy operations Weapons and Defence Coal mining Tobacco Green Bond Asset Category Renewable Energy Energy Efficiency 14 Use of Proceeds Selection and Evaluation of Green Bond Assets Subcategory Green Bond Framework six Asset Categories Included in the current Green Bond Asset Portfolio? SDG mapping* Wind power Solar power Hydro power ✓ Yes ✓ Yes ✓ Yes SDG:s 3, 7, 8, 9, 11, 12, 13 Integration of renewable energy into the No Green Buildings Pollution Prevention transmission network Smart grids, Energy storage, District heating Certified green buildings Water and waste water management Yes SDG:s 7, 8, 9 ✓ Yes SDG 11 ✓ Yes SDG:s 3, 11, 12 and Control Waste-to-energy ✓ Yes Electric cars ✓ Yes SDG 11 Clean Transportation Public transportation / ✓ Yes Sustainable Management of Living Natural Resources Freight transportation Sustainable forestry No Sustainable agriculture ✓ Yes SDG:s 2, 11, 12, 14, 15 Management of Proceeds * Source: GREEN AND SOCIAL BONDS: A HIGH-LEVEL MAPPING TO THE SUSTAINABLE DEVELOPMENT GOALS, June 2018 Reporting External Review Nordea#15Green Bond Assets overview Green Bond Assets - breakdown by category 100% 80% 60% 40% 20% 0% Energy Efficiency Green Bond Assets - breakdown by subcategory Clean Transportation 100% ■Pollution Prevention and Control 80% Green Buildings ■Renewable Energy 60% Electric Ferries ■ Electric Cars ■Electric trains Energy Efficiency Waste-to-energy Green Bond Asset Portfolio Comments 40% • After the second Green Bond issuance Nordea's outstanding Green Bonds amounts to EUR 1,250m, whereas the verified Green Bond Asset Portfolio per August 2020 amounts to EUR 2,852m ■Water and waste water management ■Certified green buildings 20% • A majority of the Green Bond Assets relate to mitigating climate change ■Solar • At issuance, 100% of the proceeds will be used for refinancing of selected Green Bond Assets* 0% ■Hydro power • All Green Bond Assets are in the Nordic countries representing Nordea's Nordic footprint Green Bond Asset Portfolio Wind power 15 * Nordea's Green Bond Asset Portfolio consists of lending towards eligible uses of proceeds and in order for the Second Party Opinion provider to verify the portfolio, it must only contain existing assets. It is however Nordea's ambition to keep increasing the volume of the Green Bond Asset Portfolio in the future, and Nordea's Green Bonds will support the growth of green financing. Nordea#16Green Bond Asset Portfolio per August 2020 (EURm, rounded) As of August 2020, Nordea has switched to a portfolio level allocation of proceeds from Green Bonds issued Category Sub-category Green Bond Assets amount (1st Green Bond, 18 % of total) Description of underlying assets Green Bond Assets amount (2nd Green Bond, Reserve amount Green Bond Asset Portfolio amount 26% of total) Wind power 67 101 216 384 Wind parks Renewable Solar power 9 13 28 49 Energy Hydro power 43 64 136 243 Hydro power stations Subtotal 119 178 380 676 Energy Efficiency 0 0 1 2 Energy Efficiency Subtotal 0 0 1 2 16 Green Buildings Green Buildings 290 435 928 1652 Real estate with at least: LEED "gold", BREEAM "very good", Miljöbyggnad "Silver" or RTS "2 stars" certification or Nordic Swan Ecolabel Subtotal 290 435 928 1652 Water and Waste Water Treatment 15 23 49 88 Pollution Prevention and Waste-to-energy 56 84 179 319 Water utilities Combustion and bioenergy Control Subtotal 71 107 228 407 Electric cars 7 10 22 38 Electric trains 13 20 42 75 Clean Transportation Electric ferries 0 0 1 2 Subtotal 20 30 65 115 Total 500 750 1,602 2,852 Nordea#17Selection and Evaluation of Green Bond Assets A robust decision-making process defines how Green Bond Assets are approved Internal evaluation External evaluation Committee sign-off* 1 2 3 Verification Confirmation Nordea selects potential Green Assets from each financing that is originated by relevant business units according to Nordea's financing criteria and proposed for selection by the business units Nordea removes financing that does not qualify (or where the client of such financing does not qualify) as Green Bond Assets Nordea further removes financing that is deemed ineligible (or where the client of such financing is deemed ineligible) in reference to Nordea's ESG assessment process The remaining financing is evaluated by sustainability experts within Nordea, after which the qualifying financing deemed as potential Green Bond Assets Verification of the potential Green Bond Assets is then performed by the external Second Party Opinion provider. The qualifying assets are included in the Green Bond Register and constitute the Green Bond Asset Portfolio The Green Bond Committee will then review the Green Bond Asset Portfolio and confirm the allocation to Green Bond Assets of the proceeds of Green Bond issuances Use of Proceeds Selection and Evaluation of Green Bond Assets Management of Proceeds Reporting External Review 17 * The Green Bond Committee includes members from relevant units within the sustainability expert functions, treasury functions, business as well as risk- and legal functions Nordea#18Management of Proceeds Comments • • • Nordea has established a Green Bond Register in relation to Green Bonds issued for the purpose of recording the Green Bond Asset Portfolio and the allocation of the net proceeds from Green Bonds to Green Bond Assets The net proceeds are deposited in the general funding accounts and earmarked for allocation in the Green Bond Register The composition and amount of Green Bond Assets is internally reviewed on a quarterly basis to account for repayments and drawings Nordea's intention is to maintain an aggregate amount of Green Bond Assets that is at least equal to the aggregate amount of outstanding Green Bonds In case not enough Green Bond Assets are available, net proceeds from Green Bonds will be held in accordance with Nordea's normal liquidity management policy Green Bond Asset Portfolio reserve as of 08/2020 (EURm)* 1 250 1 602 2 852 18 Green Bond Assets Reserve amount Green Bond Asset Portfolio Selection and Evaluation Use of Proceeds Management of Proceeds of Green Bond Assets * Green bond asset portfolio size according to latest verified information, Second Party Opinion 08/2020 Reporting External Review Nordea#19Reporting Green Bond documents* • Nordea Green Bond Framework (August 2020) • ISS ESG Second Party Opinion (August 2020) • Nordea Green Bond Report (December 2019)** The Green Bond Report provides information on: ** Green Bond Report - impact reporting* Category Renewable Energy Energy Efficiency Subcategory Wind, Hydro and Solar Smart grids, Energy storage, District heating Green Buildings Green buildings Pollution Prevention and Control Water and waste water management Waste-to-energy Impact measurement indicators Installed renewable energy production capacity (MW) Amount of energy saved (MW) Amount of energy saved (MW) Water withdrawals or treatment capacity (m3/day) Production capacity (MW) Estimation of avoided CO2e emissions compared to baseline Estimation of avoided CO2e emissions Estimation of avoided CO2e emissions Number of people impacted • • • • • The amount of net proceeds allocated within each Green Bond Asset Category (further information on the Green Bond Assets when relevant) The remaining balance of net proceeds which have not yet been allocated to Green Bond Assets Examples of Green Bond Assets (subject to confidentiality agreements) Information on environmental impacts of the Green Bond Assets (see table to the right) It is Nordea's intention to report these figures on an annual basis Clean 19 Transportation / Freight transportation Public transportation No. of passengers or amount of freight Sustainable Management of Living Natural Resources and agriculture Sustainable forestry Land area certified Selection and Evaluation Use of Proceeds Management of Proceeds of Green Bond Assets * Published on Nordea's website: https://www.nordea.com/en/investor-relations/reports-and-presentations/green-bonds/ ** The Green Bond Report 2020 expected to be published during March, 2021 Reporting External Review Nordea#20External Review "The overall sustainability quality of the asset pool in terms of sustainability benefits, risk avoidance and minimisation is good based upon the ISS ESG Green Bond KPIs." Highlights from ISS ESG's Second Party Opinion • • . "The issuer has defined a formal concept for its Green Bonds regarding use of proceeds, processes for project evaluation and selection, management of proceeds and reporting. This concept is in line with the ICMA GBPs." "The overall sustainability quality of the asset pool in terms of sustainability benefits, risk avoidance and minimisation is good based upon the ISS ESG Green Bond KPIs...All assets of the asset pool are located in highly regulated and developed countries. Legislative frameworks in those countries set minimum standards, which reduce environmental and social risks." "The issuer itself shows a good sustainability performance and has been given a rating of C, which classifies it as 'Prime' by the methodology of the ISS ESG Corporate Rating." ISS ESG's Corporate Rating • Status: Prime • Rating: C • Decile rank: 1 • • • "As at 17.08.2020., this rating puts Nordea in place 28 out of 285 companies rated by ISS ESG in the Commercial Banks & Capital Markets sector." "In all of the key issues, Nordea rates above the average for the sector. A very significant outperformance was achieved in "Sustainable investment criteria"...The bank does not face any severe controversy." CONTRIBUTION TO THE UN SUSTAINABLE DEVELOPMENT GOALS No Significant Obstruction Limited Obstruction Net Impact Limited Contribution Significant Contribution 3 2. 6 BULEMMARE DEL 20 Selection and Evaluation Use of Proceeds of Green Bond Assets ← 13 TH 15 Management of Proceeds Reporting External Review Nordea#21Green Bond Asset Categories overview Detailed description of Green Bond Asset Categories Category Project types "Renewable Energy" means generation and transmission of energy from renewable sources and manufacturing of the related equipment for: 21 • wind power • solar power Renewable Energy • Energy Efficiency • hydro power small scale plants, run of river plants or refurbishments of existing larger hydro power plants in the Nordic countries without any increase in the size of its impoundment facility integrating renewable energy sources into the transmission network "Energy Efficiency" means infrastructure, equipment, technology and processes related to smart grids, energy storage and district heating including: Automation and intelligence in the power transmission network, distribution and related systems • "Green Buildings" means; Commercial or residential buildings with at least any of the following certifications: • the LEED "gold" certification • the BREEAM "very good" certification • the Miljöbyggnad "Silver" certification (Sweden) Green Buildings Pollution Prevention and Control Clean Transportation Sustainable Management of Living Natural Resources • • Nordic Swan Ecolabel The RTS "2 stars" certification, or Renovations and refurbishments of commercial or residential buildings leading to reduced, or existing buildings having an annual energy use on a m2 basis that is at least 25% lower than the applicable national regulations in the relevant Nordic country, or that lead to an annual reduction of energy use on a m2 basis of at least 25% "Pollution Prevention and Control" means projects or activities and any related infrastructure, equipment, technology and processes towards water and waste water management waste-to-energy • "Clean Transportation" means projects or activities and related equipment, technology and processes towards clean transportation infrastructure, including expansion and improvements of train and metro networks, stations and rolling stock for passenger or freight transportation, such as: electric vehicles, e.g. trains, busses, cars and ferries "Sustainable Management of Living Natural Resources" means Projects or activities and related to sustainable forestry or agriculture in the Nordic countries, including acquisition, maintenance and management of: • forests certified by Forest Stewardship Council ("FSC") or Programme for the Endorsement of Forest Certification ("PEFC") (Sweden) sustainable agriculture in the Nordic countries comprised of: organic farming as certified in compliance with the EU and national regulation Nordea#22Nordea Deal Review - Inaugural EUR 500m Green Senior Preferred due June 2022 Timeline (CET) 19 June - 22 June 16 June Monday, 26 June 2017 Nordea announces RS for its inaugural Green Bond, EUR500m (no grow), intermediate tenor mandate. Roadshow Schedule Mon 19th Jun - London (EFC*) Tue 20th Jun London/Nordic Wed 21st Jun - Paris/Germany Thu 22nd Jun - Netherlands Allocations Investor type CBs & Ols, 13% Banks, 11% Key terms Issuer Expected rating Status Trade Settlement date Maturity date / Tenor Size Asset Reoffer Managers, 53% Insurance & Coupon Pension, 23% Listing Governing Law Use of Proceeds 09.40 Books open EUR500m (no grow), FXD, 5yr IPT's: MS+25 bps area Allocations Geography 11:40 Book Update #1 EUR books excess of €1,35bn Guidance MS+20a (+/-2bps WPIR) Books to go subject 12.55 CET 13% 12:55 Books Closed 13:15 Launched MS+18 bps 17:00 Priced EUR500m at MS+18bps Coupon 0.300% UK/Ire, BeNeLux, 13% Other, 10% France, 27% Nordics, 22% Ger/Aus, 15% Final book above EUR 1.3bn More than 100 accounts participating Joint Lead Managers Highlights • • • Nordea Bank AB (publ) Aa3/AA-/AA- (Moody's / S&P / Fitch) Direct, unsecured and unsubordinated 26 June 2017 / 30 June 2017 (T+4) 30 June 2022 / 5 years EUR 500m MS +18bps, Yield 0.323%, Price 99.886% 0.300%, Annual, Act/Act ICMA Luxembourg English law To finance Green Bond Assets that have been evaluated and selected by the Issuer pursuant to its Green Bond Framework dated June 2017 BNP Paribas, HSBC, Nordea Nordea's inaugural Green Bond represent an important step in Nordea's overall work on sustainability On the back of strong investor feedback from the roadshow, notably on Nordea's green bond framework and the strong pool of over EUR800m of green assets, Nordea opened books for the transaction with IPT's of MS+25bp. With books in excess of EUR 1.35bn by midday, the guidance was revised to MS+20a (+/-2bp WPIR) The books remained in excess of EUR1.3bn following the revised guidance, which allowed pricing in the tight end of guidance at MS+18bps The transaction represent the tightest spread for a EUR Senior Unsecured Green Bond to date, which is driven by the unique combination of Nordea's strong credit quality and the strength of Nordea's Green Bond framework. It is also the tightest spread offered on a 5 year Senior Unsecured issue in a decade The book included over 100 accounts, of which 72% dedicated green investors highlighting strong diversification to the traditional senior unsecured issue investor base * Environmental Finance conference in London Nordea#23Nordea Deal Review - Timeline (CET) 09:20 Books open EUR Benchmark 7-year Green senior preferred IPTS MS+45bp area Tuesday, 21 May 2019 11:00 Book Update #1 Books over EUR 1bn EUR 750m Green Senior Preferred due May 2026 Allocations Investor type CBs & Ols, 11% Key terms Issuer Expected rating Status Trade Settlement date Maturity date / Tenor Banks, 23% Insurance & 12:50 Books EUR 1.3bn Guidance revised to MS+35bp area (+/-3 WPIR) Books to close 13:10 CET Pension, 24% Allocations Geography Fund Managers, 42% Size Reoffer Coupon Listing Governing Law Use of Proceeds Joint Lead Managers Nordea Bank Abp Aa3/AA-/AA- (Moody's / S&P / Fitch) Senior Preferred 21 May 2019/28 May 2019 (T+5) 28 May 2026/7 years EUR 750m MS +32bps, Yield 0.478%, Price 99.293% 0.375%, Annual, Act/Act ICMA Luxembourg English law To finance or refinance Green Bond Assets that have been evaluated and selected by the Issuer pursuant to its Green Bond Framework dated November 2018 BNP Paribas, HSBC, Nordea Societe Generale 13:10 Books closed 14:00 Launched EUR 750m at MS +32bp Books closed -EUR 1.2bn Nordics, 5% Asia, 4% Sothern Europe, 10% Ger/Aus, 21% UK/Ire, 12% Switzerland, 12% BeNeLux, 16% France, 20% Final book EUR 1.1n good at re-offer 16:10 New issue priced More than 100 accounts participating Highlights Nordea decided to take advantage of a steady market and announced its second Green bond, a 7-year EUR senior preferred benchmark, on Tuesday 21st of May for intraday execution Books were opened with MS +45bp area IPTs. Despite a busy day in the market the book grew steadily with high quality orders and was recorded over 1bn at 11 CET At 12:50 CET, the orderbook stood over 1.3bn and guidance was revised to MS +35bp area (+/- 3bp WPIR). With limited price sensitivity in the book, the transaction was launched roughly an hour later at the tight end of guidance of MS +32bp and size was set at EUR 750m Fair value for the new benchmark was estimated in the high 20s area and the final pricing offered 3-4bp new issue concession. The final spread is the tightest 7-year senior unsecured pricing since May 2018 and among the tightest across all maturities year-to-date The final book included over 100 separate accounts which is a testament to the important diversification gained from the green element, as many accounts are dedicated green investors. The green bond benchmark priced circa 3bp tighter than a conventional benchmark With more than 75% of the bonds allocated to real money accounts, this transaction reaffirms Nordea as a leading FIG and Green bond issuers in EUR market and further highlights the strength of Nordea's Green bond framework and group-wide commitment to sustainability Nordea#24Contacts Investor Relations Matti Ahokas Head of Investor Relations Mobile: +358 40 575 91 78 [email protected] Andreas Larsson Head of Debt Investor Relations Mobile: +46 709 707 555 Tel: +46 10 156 29 61 [email protected] Randie Atto Debt IR Officer Mobile: +46 738661724 Tel: +46 738661724 [email protected] Casimir von Frenckell Group Sustainability Tel: +358 9 5300 5562 Mobile: +358 40 727 7271 [email protected] Group Treasury & ALM Anders Frank-Læssøe Acting Co-Head of Group Treasury & ALM Tel: +45 55477672 Mobile: +45 61612157 [email protected] Ola Littorin Head of Long Term Funding Tel: +46 8 407 9005 Mobile: +46 708 400 149 [email protected] Petra Mellor Head of Bank Debt Tel: +46 8 407 9124 Mobile: +46 70 277 83 72 [email protected] Jaana Sulin Head of Short Term Funding Tel: +358 9 369 50510 Mobile: +358 50 68503 [email protected] 24 Nordea