On December of 19, 2018 RSB KHMAO LLC obtained Green Bond Second Opinion from Rating-Agentur Expert RA GmbH* that the eligible projects for the use of funds derived from the bond issuance are well aligned with the Green Bond Principles 2018 (GBP 2018)**.

In preparing the Green Bond Second Opinion, the rating agency used the Green Finance Framework of the parent company Waste Management JSC, its spreads on all affiliated companies and branches of the company. According to Rating-Agentur Expert RA GmbH opinion, use of proceeds within the company projects agrees well with the Green Bond Principles 2018. The projects are falling into the category of eco-efficient waste management projects and application of production technologies and processes, aimed to reduce harmful effects on the environment. According to the rating agency, a selection process of projects for further execution within green financing totally corresponds to the Green Bond Principles 2018 and, also meets the needs of the market.

RSB KHMAO LLC 01 series (registration number 4-01-00428-R, registration date 22.11.2018) issued on December of 19, 2018 in full on bidding Moscow Stock Exchange PJSC is first green bond issue in. The nominal value is RUB 1.1 bn. The first coupon rate is 10% per annum, the coupon yield from second to twelfth is defined as a maximum value of one of the values: consumer price index in the RF in annual terms +4.5% or the key rate of Bank of Russia +1.5%. The bonds included in the section "First level" of list of securities admitted to trading in Moscow Stock Exchange PJSC. Funds management within the project corresponds to Green Bond Principles 2018: use of funds from this bond issue will be controlled by a special financial institution – representative of bond owners and in accordance with the intended objective of proceeds from green financing.

RSB KHMAO LLC is a member of the National association of concessionaires and long-term infrastructure investors and carries out its activities in accordance with the Sustainable Development Goals and Green Investments, developed and published by the National association of concessionaires and long-term infrastructure investors on its website https://investinfra.ru/. The company is also a participant of the additional disclosure system on concession projects INVESTINFRA https://db.investinfra.ru/; included in the register of companies realising green concession projects and on a voluntary basis provides disclosure about Sustainable Development and green investments within non-financial reporting section.

* Rating-Agentur Expert RA GmbH (RAEX Europe) – German rating agency is a division of an international group RAEX in Europe Union. The agency working since 2013, its office located in Frankfurt am Main (Germany). Since December 2015 it included in the number of accredited Europe Union agencies.

** Green Bond Principles ICMA – recommendations on the issuance of relevant securities developed under the auspices of the International Capital Markets Association (ICMA), aiming to provide higher level financial revenue management transparency and form the universal platform to harmonize national issuance practices. Within the model of Green Bond Principles formulating basic principles of issuing green bonds.