CEZ A.S.

Capital/Financing Update • Mar 30, 2022

I n t e r n a l I n f o r m a t i o n

ČEZ fixed the price of its inaugural sustainability-linked notes

Prague, March 30, 2022 - ČEZ, a. s. (Baa1/A-) emphasizes the implementation of global climate goals and the environmental impact of its business in general. In line with this strategy, its first EUR 600 million 2,375% sustainability-linked notes due 2027 based on recently established Sustainability-Linked Financing Framework, that confirms CEZ Group's commitment to decrease the emission intensity by reducing coal exposure and enhancing renewable sources, have been successfully introduced on capital markets.

In case ČEZ does not meet its GHG Emission Intensity target of 0.26 tCO2e./MWh by 31st December 2025, this will result in a 0,75% step up in coupon paid at maturity in 2027.

The deal was priced at a spread of 135 basis points above the reference mid-swap rate with a resulting issue price of 99,595%. The expected issue date is April 6, 2022. The sustainability-linked notes will be issued under the established Euro Medium Term Note Programme. Citigroup Global Markets Europe and Deutsche Bank accepted the role of sustainability structuring advisors. Barclays Bank Ireland, Citigroup Global Markets Europe, Deutsche Bank, Erste Group Bank, and SMBC Nikko Capital Markets Europe act as joint lead managers. Raiffeisen Bank International acts as a co-lead manager.

This is the first ever issue of sustainability-linked notes issued by an IG utility company in CEE.