Global Citizenship Report 2017

Examples of Our Environmental Finance Work Rattlesnake Wind Farm In April 2017, Citi provided tax equity financing with BHE Renewables (a division of Berkshire Hathaway Energy) to the Chicago-based Goldwind Americas’ 160-megawatt Rattlesnake Wind Project in McCulloch County, Texas. Citigroup Energy Inc. provided the long-term physical power hedge under which the project will receive a fixed power price. Goldwind is a subsidiary of China-based Xinjiang Goldwind Science & Technology Co. Ltd., the largest manufacturer of permanent magnet direct- drive wind turbines in the world. This project will be Goldwind’s largest U.S. project to date, utilizing 64 of its turbines, once operational. The Rattlesnake Wind Project will bring significant economic benefit to the community of McCulloch County; the company estimates it will support approximately 250 well-paying construction and service-related jobs. Walney Extension Offshore Wind Farm In January 2018, the first phase of the Walney Extension Offshore Wind Farm, a 659-megawatt wind farm off the coast of Walney Island in the Irish Sea, began generating power. The project — which is jointly owned by Ørsted, Denmark’s leading energy company, and two Danish pension funds — will be composed of nearly 90 wind turbines once complete. Citi served as exclusive M&A financial advisor, co-structuring bank and placement agent for this first-ever investment-grade project bond for an offshore wind project. The project is due to be operational in the second half of 2018, and will ulti- mately be capable of powering more than half a million homes in the UK with clean, renewable energy. The bond was oversubscribed and won the 2017 Thomson Reuters’ Project Finance International award for European Renewables Deal of the Year. The proceeds of the £2 billion sale will partially fund the construction of the offshore wind farm, which will be the largest in the world once commissioned. KfW Green Bond In May 2017, Citi acted as one of three joint lead managers on a € 2 million green bond issuance for KfW, a German government- owned development bank. It was the bank’s largest-ever green bond and attracted nearly € 4 billion in orders from over 80 investors from around the world. Proceeds from the bond will be used toward projects that qualify for the bank’s environmental investment program, Renewable Energies Programme — Standard, which is focused on renewable energy generation both within Germany and abroad. Tesla Residential Solar Financing In December 2017, Citi was the lead left, co-structuring agent and joint bookrunner on a securitization of residential photo- voltaic (PV) solar systems in the U.S. for Tesla. This $130 million offering securitized a diverse portfolio of leases and power purchase agreements (PPAs) for residential rooftop PV solar installations in the U.S. Approximately 90 percent of the asset pool was also originally financed via two Citi tax equity funds, and the remaining 10 percent were systems Tesla contributed from its balance sheet.  This is Tesla’s second securitization under the Tesla name since acquiring SolarCity Corporation (d/b/a Tesla Energy), following a first issuance in November 2017. SolarCity executed five similar transactions and two solar loan issu- ances prior to being acquired by Tesla. Tesla Energy has been a leader in the residential solar energy market, offering leases and PPAs to homeowners, since 2006. Tesla Energy has installed solar systems across 27 states, Washington D.C., Puerto Rico, Canada and Mexico and maintains operations centers across the U.S. Mutual Housing at Spring Lake Citi served as the administrator on a $16.7 million construc- tion loan for Mutual Housing at Spring Lake, an innovative affordable housing development that is the first 100% Zero Net Energy-ready rental housing development in the U.S. Located in Woodland, California, the development caters to full-time agricultural workers, who have traditionally faced inadequate and unhealthy housing conditions. Homes in the development are designed to be energy efficient and are primarily powered by an on-site solar power system so that each unit typically produces about as much energy as it consumes. Mutual Housing offers permanent year-round housing to agricultural workers and also includes leadership development, peer lending and digital education support services. In 2017, Mutual Housing at Spring Lake won the World Habitat Award for its innovative and holistic design. 84