| | | | --- | --- | | Legal Issuer | SCS Vehicle 5200 LTD | | Parties | Laconic Development (Bolivia) LLC The Plurinational State of Bolivia (the "Sovereign Party") | | Transaction Overview | This transaction contemplates the issuance, via a Cayman SPV, of Enhanced Ambition securities in the form of a note, "Enhanced Ambition Note" (EAN) and attached "Enhanced Ambition Rights" (EAR) to fund the decarbonization programs of the Plurinational State of Bolivia.

Noteholders will receive annual coupons on the EAN and will receive annual issuances of EARs at prices determined at initial issuance terminating with the final EAR issuance on the stated maturity date of the EAN.

In particular, the Plurinational State of Bolivia will pledge to the Issuer the exclusive rights to the economic benefits (including, for the avoidance of doubt, the rights associated with the ability to create emissions reductions, emissions removals, ITMOs, and Sovereign Carbon Securities) associated with changes in land use/land cover inside its sovereign territorial borders that are related to its Sectoral Conditional Ambition (its "Enhanced Ambition").

This pledge will be supported by commitments from the Sovereign Party to take such official actions as necessary to (1) recognize the Issuer's interests (e.g., through a Corresponding Adjustment ("CA") recognized under the Paris Agreement or otherwise), (2) to utilize the applicable established Greenhouse Gas Inventory Methodology promulgated by the Intergovernmental Panel on Climate Change (IPCC), or its designee, to measure the Sovereign Commitment and (3) to ensure that no other parties are able to make claims against the Sovereign Commitment.

Together, these pledged economic benefits and commitments form the assets of the Issuer. This Summary Term Sheet references a longer form Legal Term Sheet. Collectively the above is referred to herein as the "Transaction". | | SPV Ownership | Bankruptcy Remote Orphan Cayman SPV Structure | | Securities to be Issued | Enhanced Ambition Notes ("EAN") and Enhanced Ambition Rights ("EAR") issued by Bolivia SCS 01-2025 LTD | | Security Format | Depositary Notes (Receipts Depositary Corporation) | | Principal Issuance Amount | USD 2,400,000,000 (the "Tranche 1 Issuance Amount"), representing 48% of the authorized total issuance capacity of the issuer as mandated by The Plurinational State of Bolivia. | | Total tCO2e Deliverable | 80,000,000 | | Annual tCO2e Deliverable | 16,000,000 | | Average Cost/tCO2e | USD 30.00 (Annual delivery, pricing & payment schedule, see Appendix B) | | EAN Offering Price | $104.25 per note | | EAN ISIN | Assigned at Issuance | | Depository Note (EAN) ISIN | Assigned at Issuance | | EAR ISIN | Assigned at Issuance | | Depository Note (EAR) ISIN | Assigned at Issuance | | Use of Funds | Financing of Conditional Sectoral NDC Commitments pursuant to Paris Article 6.2 (Details see Appendix A) | | Lead Placement Agent | | | Announcement Date | March 1, 2025 | | Conditional NDC SDGs | See appendix A | | EAN Maturity Date | May xx, 2030 | | EAN Issue & Payment Date | May xx, 2025 | | Governing Law | England and Wales | | Coupon on EAN | The Notes shall pay simple interest on the balance of funds in the Collateral Pool at a fixed rate of \[xx\]% per annum. Interest shall accrue monthly during the term on the balance of funds in the Collateral Pool and shall be paid annually to the Noteholder pro-rata on the Annual EAR Delivery Date by the Trustee. | | Interest Basis | 30/360 | | Minimum Denominations | USD 200,000 | | SPV Asset Assignment | Via a "Deed of Transfer" the Rights under Paris Article 6.2 to the future NDC Enhanced Ambition of the Plurinational State of Bolivia | | SPV Cash Account Collateral | Cash or US Treasury Securities | | Collateral Manager | | | NDC Current FOLU Sector Emission (tCO2e) | 268,800,000 | | NDC Conditional Reduction Target (tCO2e) | 68,800,000 | | NDC Enhanced Ambition Haircut (%) | 50 | | NDC Enhanced Ambition Haircut (tCO2e) | 100,000,000 | | Financed Conditional Net Ambition (tCO2e) | 100,000,000 | | Issue Reserve (%) | 20 | | tCO2e Available for Delivery | 80,000,000 | | EARs Available for Delivery | 80,000 (1 EAR equals 1,000 tCO2e) | | Benefit Retirement | A Noteholder may exercise its right to convert its EAR into its underlying environmental benefit/ITMO by providing notice to the Trustee. The Trustee will then take any necessary steps to reflect their exercise.

The Trustee and/or EAR Servicer, as appropriate, shall provide the benefit claimant's details to the appropriate settlement / clearing agents, national and UNFCCC supranational Registries. Retirement notification will be determined in accordance with the relevant local laws of the owner's jurisdiction. | | 2026 EAR Prepayment | USD 100,000,000 | | Prepayment Date | May xx, 2025 | | % Prepay of Yr 1 Proceeds | 20.833 | | % Prepayment of Total EAN Notional | 4.167 | | Event of tCO2e Delivery Default | Automatic Redemption and return of SPV Assets to Noteholders (ProRata, Default Events are defined in the Offering Memorandum) | | Paris Sectoral Designation | LULUCF | | Authorization | Paris Article 6.2 with Corresponding Adjustment | | Authentication Standard | Intergovernmental Panel on Climate Change (IPCC) GHG inventory methodology 2006 (revised 2019) – FOLU Sector Geospatial input data evaluated pursuant to the IPCC Methodology shall conform to Tier II data standards pursuant to published IPCC guidelines.

Authentication Agent shall provide derived statistics for each Annual Sectoral Ambition Progress Measurement demonstrating that reported values are at or above accepted industry standard accuracy quantile. | | Authentication Agent | Laconic Authentication Services LLC | | Program Baseline Period | 2020-2024 | | Program Manager | PricewaterhouseCoopers LLP | | Program Baseline Measurement Date | Dec 31, 2024 | | Annual Enhanced Ambition Measurement Dates | April xx, 2026,2027,2028,2029,2030 | | EAR Delivery Notification Dates Latest | May xx, 2026, 2027, 2028, 2029, 2030 | | EAR Delivery Dates | May xx, 2026, 2027, 2028, 2029, 2030 | | Latest EAR Retirement Date | Dec 31, 2034 | | EAR Servicer | Laconic Services LLC | | SPV Servicer | CSC Global | | Trustee | CSC Global | | EAN & EAR Agent | CSC Global | | Registrar | CSC Global | | Settlement | DTCC | | Selling Restrictions | The Notes and EARs may be offered and sold in a private placement under Rule 144A and/or Regulation S of the U.S. Securities Act and have not been and will not be registered under the U.S. Securities Act or under the laws of any jurisdiction. The Notes will be placed pursuant to applicable private placement exemptions in each jurisdiction where they are offered. | | Transaction Counsel | Baker McKenzie and Cadwalader, Wickersham & Taft LLP |