Algar Telecom carries out its first debenture issue linked to ESG agenda

This is a machine translation of Algar Telecom's press release

São Paulo, January 9, 2024 - Algar Telecom announces the issuance of debentures linked to ESG practice goals. The commitments stipulate that, by 2030, the company will reduce absolute greenhouse gas emissions by 53% and reach 86% of energy consumption from renewable sources across Algar Telecom's entire energy matrix by 2025, without using the purchase of IRECs, and also investing in its own clean electricity generation assets. The funds raised will be used for general corporate purposes of the expansion strategy and in accordance with the company's ESG culture and practices.

This is the company's first issue linked to ESG commitments, which will be measured according to previously stipulated indicators, which can be checked in the company's Framework, which was positively attested by an independent opinion issued by a specialized consultancy, and will allow evaluating the evolution of the company on the climate agenda. “Fostering good environmental, social and governance practices is part of our business and we always seek to integrate sustainable practices into management, in all areas of activity”, explains Ana Paula Rodrigues Marques de Oliveira, Vice-President of People at Algar Telecom. “Since 2013, we have had a Socio-Environmental Engagement Committee, made up of representatives from all regions where Algar Telecom operates. Coming from the most diverse areas, professionals contribute to the implementation of practices to consolidate indicators, discussing goals, raising awareness and carrying out socio-environmental actions in their regions”, adds Ana Paula. The 14th issue of debentures, in the amount of R＄700 million, was approved on November 13th at a meeting of the Board of Directors. The Lead Coordinator of the operation was in charge of Itaú BBA.

The awards accumulated by the company reinforce this statement. In 2023, Algar Telecom was the winner, for example, in the Telecommunications, Technology and Media category of Exame's “Best of ESG” award, as the telecommunications operator that adopts the best practices in attention to the environment, social responsibility and to governance in Brazil. It was the tenth time that the company won the award granted by the publication.

Algar is also a signatory to the United Nations (UN) Global Compact Brazil Network, an initiative that involves companies and organizations in 160 countries to promote private sector engagement in sustainability, promoting a more inclusive and egalitarian global market through through the Sustainable Development Goals (SDGs). Some SDGs have a direct contribution from the company through its businesses and initiatives, and others are indirectly positively affected.

Algar Telecom's previous debenture issue had taken place in February 2023 in a value of R$300 million.

About Algar Telecom

Algar Telecom, a company in the Algar group, has a broad portfolio of Telecom and IT solutions to serve corporate (B2B) and retail (B2C) customers. The company offers ultra-speed fiber optic internet, quality cell phones, voice, data, and IT services, including cloud and network security services, as well as management systems for small businesses.

With 69 years on the market, it has a modern infrastructure, supported by a 122 thousand km network of optical fiber that currently serves more than 372 cities, in 16 states in Brazil and the Federal District. For all these locations, the company invests in personalized, consultative and effective service to deliver increasingly better quality to customers.

A public company, not listed on the stock exchange since 2007, Algar Telecom is committed to the best corporate governance practices. There are more than 4,500 associates - as the company's employees are called - committed to maintaining a close relationship with their customers and high quality service provision, with sustainable and innovative practices.