BBVA Bancomer/2018 Annual Report

Green bonds GRI FS8 "BBVA Bancomer's green bond issuance heralds a new milestone for the Mexican securities market". - Jaime Ruiz Sacristán, Chairman of the Board of Directors of the Mexican Stock Exchange (BMV) In April 2018, BBVA Holding released a framework for bond issues under the SDGs, whether in the form of green, social or sustainability bonds. Under this new scheme, bonds issues by BBVA Bancomer are intended to finance companies or projects in five eligible areas: Energy efficiency (including buildings to have earned environmental certification, such as LEED Renewable energy Sustainable transport Waste management Water or BREEAM) As part of BBVA Bancomer's Responsible Banking strategy aligned with the SDGs, financial instruments may be used to support the integral management of risks and opportunities relating to climate change. A key aspect of the Bank's strategy is to support projects that foster global sustainability, providing customers with innovative solutions and financing initiatives that generate positive environmental and social impacts. The aim is to promote sustainable financing, assess its strategic impact and drive management transformation initiatives that best respond to the challenges relating to climate change and other pressing social issues. If you would like to find out more about the framework governing BBVA bond issues under the SDGs, please visit https://shareholdersandinvestors.bbva.com/wp-content/uploads/2018/04/BBVA_Sustainable_Bonds_Framework- Presentation-25042018-1.pdf BBVA is the first private bank in Mexico to have successfully placed a green bond. TH 59 In 2018, BBVA Bancomer announced the successful placement of its first green bond with ticker symbol BANCOMER 18V, worth 3.5 billion pesos. It then issued a further placement for the same amount under ticker symbol BANCOMER 18, thus bringing the total to 7 billion pesos. It was agreed that 55% would be allocated to energy efficiency projects, and the remaining 45% to renewable energies (two wind farms and one solar farm) within the country. If you would like more information on the green bond issue of BBVA Bancomer, please visit the following pages: •https://www.bbva.com/es/bbva-bancomer-el-primer-banco-privado-en-mexico-en-emitir-exitosamente-un-bono-verde/ •https://www.bbva.com/es/bbva-bancomer-apoya-el-crecimiento-y-desarrollo-del-mercado-de-bonos-verdes-en-mexico/ BBVA Bancomer arranged the services of Sustainalytics to review the green bond nominated projects and to issue an opinion on their alignment with the bond issuing framework of the BBVA Group and the Green Bond Principles (GBP). To see the letter sent by Sustainalytics, please click on the following link: https://www. sustainalytics.com/wp-content/uploads/2018/09/Green-Bond-SPO-BBVA-Bancomer_FINAL.pdf Target 2019 Report on the progress made under the projects and levels of performance. BBVA Bancomer/2018 Annual Report

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