Globalworth Real Estate Investments : Green Bond Report 2021

Green Bond Allocation Report 2021

LANDLORD OF CHOICE

People . Places . Technology

Table of Contents
1.	Introduction....................................................................................................................................	2
2.	Green Bond Framework - Snapshot...............................................................................................	2
3.	Reporting and External Assurance Provider..................................................................................	3
4.	Use of Proceeds: Eligibility Criteria for Green Bond Financing.....................................................	4
5.	Project Evaluation and Selection Process......................................................................................	5
6.	Eligible Portfolio .............................................................................................................................	6
7.	Allocation of Proceeds ...................................................................................................................	8
8.	Performance Measures of Eligible and Allocated Portfolio........................................................	10
9.	Allocated Portfolio - Select Features ..........................................................................................	11
10.	Sustainalitics 2nd Party Opinion..................................................................................................	16
11.	Independent Limited Assurance Report on Allocations .............................................................	18
12.	Appendix: Overview of 20/26 Green Bond Issue. .......................................................................	22

1

1. Introduction

Globalworth is pleased to present its second Green Bond Report ("GBR") following the inaugural green bond report published on 20th July 2021.

This Green Bond Report is being published in relation to the €400.0 million Green Bond issued by Globalworth on 29th July 2020. To date, this is the sole green bond issued by the Group, is part of our Euro Medium Term Notes Programme (EMTN), and has a 6-year term from the debt capital markets maturing on 29 July 2026, in a transaction which was more than 2x oversubscribed by existing and new bond investors.

The purpose of this inaugural Green Bond is to finance or refinance Eligible Green Projects, as they are defined in the Group's green bond framework.

As at 31 December 2021, the 100% of the Green Bond net proceeds have been fully allocated to green properties, as detailed on page 8.

2. Green Bond Framework - Snapshot

Our Green Bond Framework aligns with the four core components of the Green Bond Principles 2018, issued by the International Capital Market Association (ICMA).

1.	Use of Proceeds	• Investment in green buildings
		• Investment in improving energy efficiency
2.	Project Evaluation /	•	Globalworth's Green Bond Committee
	Selection	•	Projects evaluated and net proceeds are allocated based on the

criteria listed in the Use of Proceeds

‒ For a project to be eligible to be considered for green financing, it needs to be initially approved through the general evaluation of projects used by Globalworth which includes the financial viability of the project, in conjunction with the environmental and social risks, and compliance with all applicable local regulations

3. Management of proceeds

• Value of allocated portfolio matches or exceeds the balance of net proceeds raised from outstanding green bonds.
• Any shortfall, due to intervening circumstances, is remediated by adding eligible projects to the portfolio
• Unallocated net proceeds to be held in cash or other short term and liquid instruments

4.	Reporting	• Allocation report to be issued withing a year from the issue, and
		to include:
		‒ Total amount of proceeds and net proceeds
		‒ Eligible portfolio (location, status and certifications of buildings)
		‒ Use / allocation of net proceeds
5.	External Review	• 2nd party opining by Sustainalitics, confirming that the
		Globalworth framework is credible and impactful
		• Report from an independent firm, asserting on the allocation of

the green bond proceeds to the eligible projects

2

3. Reporting and External Assurance Provider

In line with our commitment under it Green Bond Framework, to enable investors to follow our Green Bond progress, and to provide insight to prioritised areas, we are providing this second Green Bond update consisting of an Allocation Report and an Impact Report (where feasible).

The allocation of the green bond net proceeds and compliance with the financing or refinancing of Eligible Green Projects is subject to an annual external assurance by an independent third party, ERNST

• YOUNG (HELLAS) Certified Auditors - Accountants S.A. (EY), (as appended hereto).
• • EY also provided their assurance for the 2020 Green Bond Report, which was published on 20 July 2020
  • Globalworth is required to provide an update on the allocation of the net proceeds of the bond on its website, on an annual basis, until full allocation of the net proceeds is achieved

In addition, as part of our monitoring process, in the report we provide an overview of the output of the key impact areas of the Green Portfolio, including Energy and GHG Emissions.

All documentation relating to our Green Bond is available on the on the Groups' website under

• www.globalworth.com/investor-relations/bonds, and
• https://www.globalworth.com/investor-relations/reports-presentations.

3

4. Use of Proceeds: Eligibility Criteria for Green Bond Financing

The proceeds of our inaugural Green Bond, GWI Bond 20/26, are to be used to finance or refinance standing properties or development projects which are included in our Eligible Green Projects.

The criteria used for the inclusion of properties in the Eligible Green Projects, are in accordance with our commitment to investing in high-quality and environmentally friendly real estate properties, which benefit directly and/or indirectly our stakeholder and shareholders.

Eligibility Criteria

Green Buildings	•	Acquisition, construction or refurbishment of buildings which meet
		recognised standards for best practices in energy and resource efficiency
		and low-GHG emissions
	•	Such as:
		‒	BREEAM: Excellent and above
		‒	LEED: Gold and above
Energy efficiency	•	Building renovations: Renovations or refurbishment of existing buildings
		not contemplated under the "green building" category, subject to:
		‒	Major renovations(1): The renovation is compliant with the
			requirements set in the applicable building regulations for 'major
			renovation' transposing the Energy Performance of Buildings Directive
			(EPBD), meeting cost-optimal minimum energy performance
			requirements in accordance with the EPBD.
		‒	Renovations for relative improvement: Individual or set of renovations
			delivering within a maximum of 3 years a reduction of Primary Energy
			Demand of at least 30% in comparison to the energy performance of

the building before the renovation(s).

• Individual measures: Individual measures reducing energy use and/or carbon emissions for the operational phase of the building. A list of eligible individual measures can be found under Appendix 1 of the Green Bond Framework.

Source: Green Bond Framework; (1) Renovation of a building where: (a) the total cost of the renovation relating to the building envelope or the technical building systems is higher than 25 % of the value of the building, excluding the value of the land upon which the building is situated; or (b) more than 25 % of the surface of the building envelope undergoes renovation.

4