Corporate & Institutional Banking

STRICTLY PRIVATE AND CONFIDENTIAL

Green bond issuance ABN AMRO

Joop Hessels, Head of Green Bonds

Webinar SEIF, 26 September 2017

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ABN AMRO in a nutshell

ABN AMRO is built on a rich history of offering financial services, starting with the establishment, in 1720, of the predecessors of the oldest Dutch merchant bank, later MeesPierson.

We aim to provide innovative and transparent products and services.

After our recent IPO, in 2015, the government will remain a shareholder of ABN AMRO for some time and will gradually reduce its shareholding over the coming years.

In November of 2016 the Government agreed on the sell down of 7% of AAB shares towards a 30% floating share.

1) Dutch Consumers’ Association, WUA Web Performance

2) Based on Scorpio Private Banking Benchmark report 2013

Sources: ABN AMRO investor relations, ABN AMRO prospectus

Financial overview EUR bn FY ‘15 FY ‘16 H1 ‘17

Operating income 8.5 8.6 4.7

Underlying profit 1.9 2.1 1.6

Cost income ratio 61.8% 66.0% 57.4%

Underlying ROE 12.0% 11.8% 16.7%

Total balance sheet 390 394 404

Client Assets 314 323 311

Core tier 1 ratio 15.5% 17.0% 17.7%

Long term credit ratings: S&P Moody’s Fitch

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A1 A+

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A1 A+

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A1 A+

Division Description

Retail Banking

Top position in the Netherlands Serves Dutch retail and affluent consumer

clients with investible assets up to EUR 1m Best online banking service in NL (9.2 out

of 10)1)

Private Banking

No. 1 in the Netherlands No. 3 in the Eurozone2)

Serves private clients with assets >EUR 1m, institutions and charities

Commercial Banking

Leading position in the Netherlands Serves business clients with revenues

between EUR 1-250m

Corporate & Institutional Banking

Leading domestic position in mid-large cap Serves business clients with revenues

exceeding EUR 250m also with products related to financial markets

Includes debt & equity advisory products

Share price performance ABN AMRO since IPO (20 Nov ‘15)

8.010.012.014.016.018.020.022.024.026.028.030.0

Nov/15 Feb/16 May/16 Aug/16 Nov/16 Feb/17 May/17

Q3 2016

Results

Q2 2016

Results

FY 2015

Results

Financial Calendar: 9 Aug 2017: Q2 2017 8 Nov 2017: Q3 2017

EUR

7% sell down to 30% floating

FY 2016

Results

Q1 2017

Results

Q1 2016

Results

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ABN AMRO’s sustainability ambitions

KPI

Key Performance Indicator

How to reach green investors

Green Bonds!!

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Or roughly two-third of our balance sheet

ABN AMRO finances over 10% of square meters of all residential

and commercial real estate in the Netherlands

Focus on energy efficient makes sense for ABN AMRO

61% 6%

33%

Residential mortgages Consumer loans Corporate loans to clients

Impact on CO2 emissions

Wallet size

Real estate is large part of ABN AMRO balance sheet

36%

The built environment is responsible for

of total EU CO2 emissions

This equals with EUR 185bn of lending

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1) Landmarks are buildings that are leading examples in ways of sustainability

And supports the ambitions to the transition to sustainable CRE

Landmarks1) Energy transition Transformation

Goals Goal 2018: 300,000 m2

Goals Goal 2018: 30% A-label 0-measurement Jan 2016: 6% Current level 14%

Goals Goal 2018: 30 Landmarks financed

Results to date Goal reached very recently Good example is OVG-

ABN AMRO green loan These include to remove empty

buildings from the market

Results to date Sustainable Investment tool

launched Started client meetings ABN AMRO EUR 1bn green

Commercial Real Estate fund

Examples The Edge: World’s most sustainable

office building, located in Amsterdam Park 20/20: The first full service

Cradle to Cradle business park in the world

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ABN AMRO strategy on built environment: Mission 2030

Lead by example Support transition Mission 2030:

Support Energy transition

Goals Goal 2030: Entire portfolio of ABN

AMRO financed property to reach an average EPC label A

Goals Provide discount of 20bp if Energy

Efficiency and other requirements are met

Support mortgage clients with online tool to evaluate EE upgrade potential

Offer expert analyses to create energy passport

Commercial real estate, finance 100% of energy efficiency upgrades

Goals Goal 2023: All own buildings EPC

label A

Why Massive impact if we can improve

energy efficiency together with our clients

Bank is in a position to encourage change in the real estate market

Both new financing of energy efficient buildings and energy efficient upgrades are in focus

Current status 50% already has EPC: A, owned

property already 89% EPC A Dialogue and co-operation with

owners in case of rented office space

First energy neutral retail office in 2016

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Combined with Circular ambitions for 2020

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EUR 1bn Circular assets

financed

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1m ton CO2

reduced

1

100 Circular

transactions executed

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3 categories of eligibility criteria for ABN AMRO Green Bond

Green Loans Residential mortgages

We followed the European Performance of buildings directive

Recently built residential housing

25% more efficient than highest label

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Eligibility criteria on commercial real estate

Upgrade and transformation New buildings

Recommended minimum certification: Very Good

Recommended minimum certification: Gold

CO2 emission reduction of of average renovation portfolio

Minimum individual CO2 reduction of

30%

20%

Transformations require a minimum energy label of A

NEW UPGRADE

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Example: Green Real Estate Loan

First Certified Green Real Estate Loan

Real estate developer OVG and ABN AMRO joined forces to develop the first Certified Green Real Estate Loan

ABN AMRO financed the purchase of 4 empty buildings which were transformed into modern, attractive and energy efficient buildings

The loan was set-up in line with the Green Bond Principles and received a Climate Bond Initiative Green real estate certification

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Examples ABN AMRO real estate in green bond

CIRCL: ABN AMRO’s Circular Pavilion

ABN AMRO’s Pavilion project will not only focus to become Energy and CO2 neutral but also has strong emphasis on materials that do not lose value and can be re-used in the future, also known as circular economy materials. It aims for at least a BREAAM-NL “Excellent”. The buildings will make use of PV-panels to generate energy, CO2 from meeting rooms will be transported to the “greenhouse” on top of the building to provide plants with rich air, and water saving measurements are used throughout the building. For example, grey water toilets or if possible vacuum toilets that do not use water at all.

ABN AMRO office Alkmaar

The ABN AMRO office in Alkmaar is the first Energy and CO2 neutral bank office building in the Netherlands. The building is fully energy self-sufficient. With the use of solar panels on the roof and a small windmill, the building operates CO2 neutral. In addition, with the innovate use of salt crystals (face-changing-materials), which absorb cold the night and cool the inner climate during the day, reducing requirement for air-conditioning. The building received a Dutch energy label A+++ and BREEAM “Outstanding” certification.

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Green Bonds providing interesting opportunities for ABN AMRO

Strategic Importance and Leadership

Risk Management and Business Alignment

Investor Focus and Diversification

Communication and Image Competitive Pricing Strategic Investor Dialogue

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More info…

Contact details

Joop Hessels Head of Green, Social and Sustainability Bonds Executive Director Amsterdam, The Netherlands T: +31 20 383 69 29 M: +31 6 23 36 17 36 E: joop.hessels@nl.abnamro.com

Reports

For detailed reports of ABN AMRO Green bonds, please look at: https://www.abnamro.com/en/investor-relations/debt-investors/unsecured-funding/euro-medium-term-notes-greenbonds.html

General information

For more general info, please also look at www.abnamro.com/greenbonds

A Appendix

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Detailed Green bond framework (1/2)

ABN AMRO and Sustainability

ABN AMRO has chosen Sustainability as one of the core values and business principles of the organization, as recognized by several external assessments such as: Oekom research: Rating C PRIME (ranked #12 out of 292

companies rated by oekom in the “Financials / Commercial Banks and Capital Markets” sector)

Sustainalytics: Industry Leader in sustainability (ranked top 5% of sustainable companies in the financial sector worldwide)

Imug: positive

Rationale Green Bonds

The Green Bond is a way to convey ABN AMRO’s sustainability credentials to a broader audience, and connect sustainable parts of its business with dedicated investor demand

The built environment is a large contributor to CO2 emissions (25-30% of total CO2 emissions in the Dutch market)

The Green Bond will also allow ABN AMRO to diversify its investor base and attract new, environmentally focused investors

Green bond is a senior unsecured bond which ranks pari-passu with all other senior bonds

During this project we worked closely together with our Retail Mortgage Group, ALFAM GreenLoans and Commercial Real Estate group who are the asset owners within ABN AMRO

Our discussions with Oekom, CBI, W/E Consultants and the asset owners triggered many follow-up discussions on sustainability

Use of Proceeds: eligible loans

The proceeds of this Green Bond will be exclusively used to (re)finance Energy Efficiency loans: Residential Mortgage Loans for recently built energy-efficient

houses Commercial real estate loans for energy-efficient buildings Renewable Energy (Solar PV) Green Loans for existing

residential housing The loans are originated in the Netherlands and held by ABN AMRO directly or by its affiliates.

1 2 Process of evaluation and selection

The selection is based on eligibility criteria as defined by ABN AMRO (see next slides)

In addition, oekom research comprised a list of additional sustainable criteria. On these criteria, the sustainable quality has been verified by oekom

The selection of assets is carried out by the respective asset owners, who provide a pre-defined monthly report

Treasury officials will review whether existing and new loans qualify as eligible according to the defined criteria

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Green Bond Framework (2/2)

Management of Proceeds

Use of Proceeds of bonds The net proceeds of the bonds will be

moved to a Green Bond portfolio As long as the bonds are outstanding,

ABN AMRO aims to allocate an amount equivalent to the net proceeds of the bonds towards eligible assets

ABN AMRO commits to ensure that the bond proceeds can be fully directed to the eligible loans by limiting the total issued amount to be 80% of eligible loans

On a best efforts basis ABN AMRO replaces assets with other eligible assets in case loans are no longer eligible or early repaid

In case not enough eligible projects are available, net issue proceeds will be invested in short-term, liquid money market instruments which are rated ‘Prime’ or better by oekom

Internal Management Procedure On a monthly basis, the departments

owning the green assets report on a monthly basis the available loans based on the pre-determined eligibility criteria. Treasury approves the allocation of the green bond proceeds to the eligible assets

3 4 Reporting

Quarterly reporting on use of proceeds, showing: Allocated assets including a breakdown

by asset type Total outstanding amount of green bond

transactions Total unallocated proceeds That the total issued amount does not

exceed 80% of the eligible loans

Annual impact reporting Environmental impact (EPC label,

BREEAM scores) and energy performance (energy consumption decrease, CO2 emissions avoided)

Sustainability performance for commercial real estate: example of indicators

% of offices with easy access to public transport

% of building projects which have a Breeam ”Very Good” or Leed “Gold” certificate

Additional details are provided in framework document and oekom report

All reports to be published on the ABN AMRO website

Assurance

Oekom Second Opinion Oekom has defined a

verification framework to evaluate sustainability performance and has verified compliance against those criteria, including alignment with the Green Bond Principles 2015

Audit ABN AMRO will appoint an external

auditor to provide assurance on the allocation of the Green Bond proceeds to eligible assets or the investment of the unallocated proceeds in approved financial instruments

External audit takes place annually and is published within 120 days after the publication of the annual results via the ABN AMRO website, or sustainability reporting

Climate Bond Initiative Certification This Green Bond received the Climate

Bond Standard certification, confirming that the bond is aligned with CBI’s Real Estate standards and that the assets are falling in the top 15% of the local market in terms of emissions performance

The green bond is the largest Certified Climate Bond to date and the first to included residential mortgages

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This presentation has been prepared by ABN AMRO Bank N.V. (“ABN AMRO”) exclusively for the benefit and internal use of you to serve for discussion purposes only. This presentation is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by ABN AMRO. This presentation is proprietary to ABN AMRO and may not be disclosed to any third party or used for any other purpose without the prior written consent of ABN AMRO. The information in this presentation reflects prevailing conditions and our views as of this date, all of which are accordingly subject to change. ABN AMRO’s opinions and estimates constitute ABN AMRO’s judgement and should be regarded as indicative, preliminary and for illustrative purposes only. In preparing this presentation, we have relied upon and assumed, without independent verification thereof, the accuracy and completeness of all information available from public sources or which was provided to us by or on behalf of you, if any, or which was otherwise reviewed by us. No representation or warranty express or implied, is or will be made in relation to, and no responsibility or liability is or will be accepted by ABN AMRO (or any of its respective directors, officers, employees, advisers, agents, representatives and consultants) as to or in relation to, the accuracy or completeness of this presentation or any further written or oral information made available to you or your advisers. ABN AMRO expressly disclaims any and all liability which may be based on the information contained in this presentation, errors therein or omissions there from. In particular, no representation or warranty is given as to the accuracy of any information (financial or otherwise) contained herein, or as to the achievement or reasonableness of any forecasts, projections, management targets, prospects or returns. In addition, our analyses are not and do not purport to be appraisals of the assets, stock or business of the company. Even when this presentation contains a type of appraisal, it should be considered preliminary, suitable only for the purpose described herein and not to be disclosed or otherwise used without the prior written consent of ABN AMRO. The information in this presentation does not take into account the effects of a possible transaction or transactions involving an actual or potential change of control, which may have significant valuation and other effects. ABN AMRO makes no representations as to the actual value which may be received in connection with a transaction nor the legal, tax or accounting effects of consummating a transaction. This presentation does not constitute a commitment by ABN AMRO to underwrite, subscribe for or place any securities or to extend or arrange credit or to provide any other services. This presentation has not been registered or approved in any jurisdiction.

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