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Investor Presentaiton

Second Party Opinion by Sustainalytics¹ Use of Proceeds By financing social housing, CdM directly supports Spain's State Housing Plan Comunidad de Madrid's finances public education for all, and allocates resources to guarantee access to education for students in disadvantaged situations The financing of the healthcare programme will facilitate the ongoing provision of quality healthcare services to the local population Comunidad de Madrid supports social cohesion and inclusion, protection of children and women, and care for the elderly and incapacitated via its measures and policies The support provided to Madrid's SMEs, will strengthen the competitiveness of SMEs and leading to the creation and preservation of jobs, and promote the integration of vulnerable people Financing low carbon transportation and reduction of global CO2 emissions are considered an impactful use of proceeds Project Evaluation and Selection In line with market practice Management of Proceeds In line with market practice Reporting In line with market practice ☑ ☑ SUSTAINALYTICS Second-Party Opinion Comunidad de Madrid Sustainable Finance Framework Evaluation Summary Sustainalytics of the opinion that the Comunidad de Madrid Sustainable Finance Framework aligns with the Green Bond Principles 2018 Green Loan Principles 2018 Social Bond Principles 2018 and the Sustainability Bond Guidelines 2018. This assessment is based on the folowing USE OF PROCEEDS The sixeligible categories for the use of proceeds (Affordable Housing ) Education; (i) Healthcare; (v) Social Inclusion; Economic Inclusion and SME Financing: () Climate Change and Environmental Management are aligned with those recognized by both the Green Bond Principles and the Social Bond Principles. Sustanalytics considers the digible categories outlined in the Comunidad de Madrid Sustainable Finance Framework to have clear social and environmental benefits with specific relevance to UN Sustainable Development Goals 1, 3.4.5 8. 11,13 and 15 PROJECT EVALUTION / SELECTION Bigible programmes are evaluated and selected by a dedicated internal Selection Monitoring and Evaluation Commitee The Commmee is composed of representatives from the Regional Treasury Department and sub- departments for Financial Planning and Public Finance and it will meet prior to the issuance of a sustainable finance instrument to select eligible programmes from the General Budget. Sustaina considers the project evaluation end selection process of Comunidad de Madrid to be in line with market practice MANAGEMENT OF PROCEEDS In line with market practice, the proceeds of the Sustainable Finance Framework will be allocated to eligible budgetary programmes in the General Budget of Comunidad de Madrid, comesponding to the fiscal year of the lasuance and/or to the fiscal year preceding the year of the issuance. In case full allocation at issuance is not possible, the unallocated proceeds will be held and/or invested in Comunidad de Madrid's liquidity portfolio. pending full allocation REPORTING Comunidad de Madrid intends to report on the allocation of proceeds on its website within approximately one year from the cats of issuance and until the proceeds have bean fully allocated Allocation reporting will include the total amount provided to the various eligible budgetary programmes. Where feasible, the impact report will include relevant impact indicators per each green and accial eligible category. Sustainalytics views Comunidad de Madrid's allocation and impact reporting as aligned with market practice © 2020 SUSTAINALYTICS SECOND- PARTY OPINION Evaluation date Issuer Location March 27, 2020 Madrid Spain Report Sections Introduction 2 Sustainalytics Opinion. Accendices 3 11 For inquires contact the Sustainable Finance Solutions project team Evan Bruner (Arnsterdam) Project Manager even [email protected] (+31) 20 205 0027 Jean-Claude Berthelot (Amsterdam) Client Relations jean claude [email protected] (+31) 20 205 00 15 Sustainalytics is of the opinion that the Comunidad de Madrid Sustainable Finance Framework is credible and impactful, and aligns with the Green and Social Bond Principles and Green Loan Principles 2018 Source Comunidad de Madrid 1The full Second Party Opinion is available at: http://www.comunidad.madrid/inversion/relacion-inversores/deuda-sostenible 56 56
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