EQT AB (publ) has successfully priced a EUR 750,000,000 sustainability-linked bond maturing in 2028 and a EUR 750,000,000 sustainability-linked bond maturing in 2032 (the "SLBs"). The SLBs will have a coupon of 2.375% per annum for the bond maturing in 2028 and 2.875% per annum for the bond maturing in 2032. The SLBs will be subject to separate step-ups in their respective interest rates if the sustainability performance target is not met.

The SLBs will be issued on 6 April 2022, subject to customary closing conditions. On 16 March 2022, EQT announced the combination with Baring Private Equity Asia (BPEA), a leading private markets investment firm in Asia. EQT intends to use the net proceeds of the SLBs, together with the issue of ordinary shares and cash, to fund the consideration and transaction expenses in connection with the combination.

Similar to EQT's inaugural bond in 2021, the SLBs' coupon rates will be connected to a predetermined sustainability performance target. The sustainability performance target under the SLBs will be that 40% of eligible EQT Funds' private and listed equity portfolio companies (by EUR invested capital) shall have set science-based targets (SBTs), approved by the Science Based Target initiative (SBTi), by 2025. The SLBs' thus reinforces EQT AB's approach of having sustainability as an integral part of the business model of both the EQT AB Group and the EQT funds' portfolio companies.

EQT had its own Science Based Targets approved in 2021, the first private markets firm globally to do so. EQT AB's long-term issuer credit rating has been confirmed by Fitch Ratings Ltd. to be A- with a negative outlook as of 21 March 2022. The ESG aspects of the SLBs have been structured to reflect EQT AB's Sustainability-Linked Financing Framework, which was established in accordance with the ICMA's sustainability-linked bond principles.

An application has been made for the SLBs to be listed and admitted to trading on the Luxembourg Stock Exchange's Euro MTF market.Characteristics of the Sustainability-Linked Bond maturing in 2028: Total amount to be issued: EUR 750,000,000. Maturity: 6 years. Interest rate: 2.375% per annum, subject to an increase of 0.25 percentage points if the sustainability performance target is not met.

Listing: Euro MTF, Luxembourg Stock Exchange: Characteristics of the Sustainability-Linked Bond maturing in 2032: Total amount to be issued: EUR 750,000,000 Maturity: 10 years. Interest rate: 2.875% per annum, subject to an increase of 0.20 percentage points if the sustainability performance target is not met Listing: Euro MTF, Luxembourg Stock Exchange.