Séché Environnement

Successful First Sustainability-linked Bond Issue With Decarbonization Criteria

Regulatory News:

Séché Environnement (Paris:SCHP) announces the successful placement of its first Sustainability-Linked Bond¹ with French and European investors.

This seven-year €300 million bond with an interest rate of 2.25% will refinance its senior bank debt and private placements, as well as financing the Group's general needs.

Against the backdrop of COP26, which is currently taking place, the bond incorporates ambitious environmental performance criteria in terms of the decarbonization of the economy, in line with the commitments made under the Paris Agreement on climate change.

For this issue, the rating agencies S&P and Fitch awarded Séché an initial long term credit rating of BB.

Séché Environnement has issued a bond with two ESG (Environment, Social, Governance) performance criteria relating to its strategy to reduce its own greenhouse gas emissions and increase the greenhouse gas emissions avoided by its customers thanks to its recycling activities.

The successful placement of this issue, which was largely oversubscribed by top-tier French and European investors, reflects Séché Environnement's credit quality, the credibility of its plan to reduce its GHG emissions, and the recognition by these leaders in green finance of the positive impact of its recycling activities in decarbonizing the economy.

The sustainability-linked bond – the first issued by Séché Environnement on the debt market – has the following characteristics:

• Amount: €300 million
• Maturity: November 2028
• Coupon: 2.25%
• Sustainability performance criteria:

1. 10% reduction in greenhouse gas emissions at constant scope (scope 1 and 2 emissions, France) by 2025 compared to 2020;
2. 40% increase in greenhouse gases avoided by customers thanks to its recycling activities in the circular economy by 2025 compared to 2020.

The strategy based on these two sustainability criteria was subject to an SPO² report by Standard & Poor's Global Ratings, enabling Séché Environnement to meet the conditions of an ESG bond.

These two criteria received a Strong rating from Standard & Poor's for their relevance in terms of Séché Environnement's strategy and core business.

The bond will refinance a senior bank loan (which also included sustainability performance criteria) due in 2023, and certain Euro PPs maturing in the same year, with a lower interest rate. It will also cover the Group's general needs.