Terna — Capital/Financing Update 2021

Jul 12, 2021

TERNA: THE NEW GREEN BOND LISTED ON EXTRAMOT PRO SEGMENT OF THE ITALIAN STOCK EXCHANGE

Rome, 12 July 2021 –The last Terna's green bond issue, launched on 16 June 2021, will be included in the ExtraMOT PRO segment of the Italian Stock Exchange. The Italian high and extra-high voltage transmission grid operator's green bond has a nominal amount of € 600 million, with maturity date falling on 23 June 2029 and a coupon of 0.375%.

The new green bond, as happened in September 2020 for the previous Terna's green bonds, will be included in the segment of the Italian Stock Exchange, dedicated to green and social bonds and established to provide opportunities for investors alike to identify solutions for which the proceeds are used to finance projects with specific environmental and social benefits or effects.

The net proceeds from the green bond issue will be used to finance the Company's Eligible Green Projects, defined or to be defined in accordance with the "Green Bond Principles 2021", published by the International Capital Market Association (ICMA), and the EU Taxonomy. Terna's strategy is therefore confirmed aimed at combining sustainability and growth to promote the current ecological transition and generate greater benefits to the Italian country and all the stakeholders.

This Press Release (the "Press Release") (including the information contained therein) neither constitutes nor is part of an offer of sale or an invitation to buy Securities issued by the company. No action has been taken nor will be taken by the Company with the aim of allowing an offer of sale or an invitation to buy Bonds in any jurisdiction where the completion of any formalities whatsoever are required for that purpose.

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It is forbidden to distribute this Press Release in jurisdictions where the completion of any formalities whatsoever are required for that purpose. Individuals who have access to this Press Release are required to inform themselves about and to observe the above prohibitions.

In particular, this Press Release (including the information contained therein) neither constitutes nor is part of an offer of sale of Securities in the United States of America or in Japan or in Australia or in Canada and shall not be directly or indirectly distributed in these jurisdictions.

The Securities have not been and will not be subject to registration pursuant to the United States Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States of America in the absence of registration or special exemption from registration under the U.S. Securities Act.

In the United Kingdom this Press Release is directed only (i) at persons with professional experience in investment according to the provisions of Art. 19 (5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), and qualified investors in accordance with the provisions of Art. 49(2) from (a) to (d) of the Order, and (ii) at those to whom this press release may be distributed in accordance with the law (collectively "Relevant Persons"). This Press Release must not be used and must not be relied upon by individuals who are not Relevant Persons. Any investment or investment activity referred to in this Press Release is to be understood as in the exclusive interest of and addressed exclusively to Relevant Persons and will be undertaken exclusively with Relevant Persons.

The documentation relating to the issuance of the Notes is not and will not be submitted to CONSOB (the Italian Securities Exchange Commission) pursuant to the applicable laws. Therefore, the Notes may not be offered, sold or distributed to the public in the territory of the Republic of Italy, other than to qualified investors, as defined by Article 2(1)(e) of the Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 (the "Prospectus Regulation"), by Article 35(1)(d) of CONSOB Regulation No. 20307 of 15 February 2018, pursuant to Article 100 of Legislative Decree No. 58 of 24 February 1998 (the "Consolidated Finance Act"), as amended, and pursuant to Article 34-ter of CONSOB Regulation No. 11971 of 14 May 1999 (the "Issuers Regulation"), as amended from time to time, or in the other circumstances set forth under Article 100 of the Consolidated Finance Act, the "Prospectus Regulation", or the Issuers' Regulation or the Prospectus Regulation, in any case in compliance with laws and regulations or requirements imposed by CONSOB or other Italian Authority.