Empresa Distribuidora y Comercializadora Norte Sociedad Anónima : April 2024, Social Bond Update

First

Social Bond

Class 1 and Adittional Class 1 - Isuee Report

April 2024

F I R S T S O C I A L B O N D

Content

1 . A B O U T E D E N O R

Empresa Distribuidora y Comercializadora Norte S.A. (edenor) is the largest electricity distribution company in Argentina in terms of number of customers and electricity sold.

Our concession area includes 20 municipalities in the northwestern zone of the Greater Buenos Aires and the northwest area of the Autonomous City of Buenos Aires, which covers an area of 4,637 km2. We provide our service to 3.3 million customers who represent a population of approximately 9 million inhabitants and 370,000 SMEs and industries.

We have 4,635 employees directly employed, to which we should add approximately 6,000 people from our network of contractors.

Our market share is 20% of the national electricity demand.

2 . E D E N O R A N D T H E C O M M U N I T Y O U R R O L E I N S U S T A I N A B I L I T Y

Based on edenor's mission "To deliver a socially responsible service of distribution and commercialization of electrical energy, which contributes to improve people's quality of life, the development of business and the community, assuring the growth of the company, employees and shareholders", the company is a major player in the provision of an essential service within the framework of a new energy paradigm and in the fight against climate change, seeking to lead this transition by getting a smart grid, encourage energy efficiency programs and inclusion, as well as helping to develop the electro mobility industry in the country.

At edenor we provide a service that is deemed essential for the development of the community. Being aware of this, we develop our sustainability strategy* aligned with our business and the Sustainable Development Goals (SDG), having as main focus the following programs:

• Electricity Inclusion and Smart Consumption Program
• Carbon Footprint and Waste Reduction Program
• Program of Scholarships and Technical and University Mentoring and edenorchicos Program

Sustainable Development Goals (SDG)*

• In 2023, the materiality matrix was updated (see 2023 Sustainability Report).

3 . R E P O R T S T R U C T U R E A N D M E T H O D O L O G Y

• Upon the issue of its new Class N1 - Notes, edenor has made the commitment to report the full allocation of the amounts earmarked for Eligible Projects, as well as the expected impact metrics, within 60 days from the date of issue.
• This report includes information on the amounts refinanced through the Exchange Offer, for the period corresponding to 36 months prior to the settlement date of the New Class N1 - Notes (May 12, 2022) and the Additional ON Class N1 (October 25,2022)
• For this, we consider the following sources of information:

1. Customers base

o Investor Relations Management Report, DIME Management Report, Management Report on Budget and Management Control, Sustainability Deputy Management Report

1. Telephone survey of DIME customers

The projects included in the Social Bond correspond to expenses and investments that are intended to expand access to the electricity grid and smart and efficient consumption programs, reaching communities and customers within edenor´s concession area with difficulties in accessing electric power.

This report is being published on edenor´s website and on the BYMA´s Panel of Green, Social and Sustainable Bonds (SVS, for its acronyms in Spanish) (https://www.byma.com.ar/bonos-svs-esp/and https://ir.edenor.com/).

4 . G E N E R A L C H A R A C T E R I S T I C S

• Within the framework of the Global Program for the Issue of Debt Securities in the short, medium and/or long term, edenor issued on 05/12/2022, the New Class N1 and Additional Class N1- Notes issued on October 25, 2022. They are instruments at an annual rate of 9.75% denominated in U.S. dollars for a total nominal value of $ 55,244,538, which are due on May 12, 2025.
• The Social nature of the Bond issue in the Capital Markets was defined following the guidelines of the Social Bond Principles ("SBP") published by the
  International Capital Markets Association ("ICMA").
• Additionally, we have considered the requirements and guidelines issued locally by the Argentine Securities Commission ("CNV", for its acronyms in Spanish) according to General Resolution No. 788/2019 and by the sustainable panel of the local market of "BYMA" (Argentine Markets and Stock Exchanges), regarding the issue of these types of instruments.
• The assessment of the New Class N1- Notes has been carried out by FIXSCR (affiliate of Fitch Ratings) as an external reviewer, which has issued the Second Opinion report.
• The Bond is listed on BYMA's Panel of Green, Social and Sustainable Bonds (SVS).
• According to the International Capital Market Association (ICMA) social bonds are a debt instrument where proceeds are applied exclusively to finance or partially or fully refinance eligible new or existing social projects that are aligned with the four main components of the Principal Green Bonds (GBP): Use of Funds, Project Evaluation and Selection Process, Fund Management and Reports
• For this issue, we define those Eligible Projects carried out including the following goals:

1. Provide affordable access to electricity grid infrastructure.

1. Improve the quality of life of the beneficiary communities of the projects, including access to the electricity grid, as a basic public service and the rational use of energy, as a fundamental pillar in creating awareness in the face of paradigm changes in the matrix future energy, in addition to benefits in terms of food and

hygiene, among others.

1. The communities included were those that currently meet the requirements to access the Social Tariff, as well as those popular neighborhoods with economic difficulties, in order to be connected to the electricity grid in a safe, efficient and

affordable way.

1. Provide education about the intelligent and efficient use of energy. o Access to education, employment and business development.

The selection process for eligible projects was focused on electricity inclusion of poor neighborhoods and compliance with the Sustainable Development Goals (SDGs):

• No. 7 - Affordable and Clean Energy
• • Electricity inclusion of poor neighborhoods
  • Education about the efficient use and cost of energy
  • Expansion and adaptation of the network so that the new customers have access to safe electricity and a better service
  • Customers registered, regularized and safely integrated into the system
• No. 10 - Reduction of inequalities according to the following impacts
• • Access to a quality public service, improving people and network safety
  • Possibility of opening a bank account or accessing other services
  • Possibility of self-managing consumption (energy load) according to the flow of family income
  • Digitization of the service adapted to the needs of the customer
  • Improvement in the quality of life in food and health
  • Access to social tariff
  • Access to education, work and business development
  • Access to consumer credit

5 . M A I N F I G U R E S

$ 55.2 M

Amount of the bond

$ 55.2 M

Refinanced amount

DETAILED INVESMENT

Total Investments made (denominated in million Pesos restated Dec-23):76,438.00

Total Investments made (denominated in million Dollars equivalent): 55.2

Number of works made: 354

Number of poor neighborhoods improved: 118

High voltage networks installed [km]: 23.70

Medium voltage networks installed [km]: 111.4

Low voltage networks installed [km]: 191.0

Transformers installed [un] 117

Remote control points for service quality improvements 125

W O R K S F O R E L E C T R I C I T Y I N C L U S I O N

D I S T R I B U T I O N O F I N V E S T M E N T P E R M U N I C I P A L I T Y ( % )