Principal Financial Group® Issues $600 Million Sustainability Bond

Proceeds to support green and social initiatives that reinforce the firm’s ESG commitments

Principal Financial Group^® issued its first sustainability bond on August 16 in the amount of $600 million as part of the company’s commitment to integrating and advancing Environmental, Social, and Governance (ESG) practices and initiatives in its organization and operations.

“Principal^® is committed to being sustainable in our actions and solutions, and intentional in how we’re making progress toward our purpose,” said Deanna Strable, executive vice president and chief financial officer for Principal Financial Group. “The issuance of a sustainability bond gives us an additional pathway to stimulate positive change in areas we believe we can have the greatest impact for the customers we serve and the communities where we work.”

Under the terms of a five-year funding agreement-backed notes (FABN) through Principal Life Global Funding II, Principal will reinforce its corporate responsibility commitments by allocating bond proceeds towards eligible green and social initiatives such as green buildings, renewable energy, energy efficiency, sustainable water practices, clean transportation, pollution prevention and control, living natural resources, financial inclusion, health and education services, affordable housing, and socioeconomic advancement and empowerment.

According to the Principal Sustainable Financing Framework, eligible assets may include existing or future investments that meet defined criteria to help advance United Nations Sustainable Development Goals (U.N. SDGs). A business is only eligible if 90% or more of its revenue is derived from activities and criteria that aligns with U.N. SDGs.

BNP Paribas Securities Corp. served as sole sustainability structuring agent and joint book runner with Bank of America Securities, Inc. and HSBC Securities (USA) Inc. for the sustainability bond, which drew the interest of over 60 investors.

More information about how Principal is advocating for and advancing ESG programs is available at principal.com/sustainability.

About Principal Financial Group^®

Principal Financial Group^® (Nasdaq: PFG) is a global financial company with 18,000 employees¹ passionate about improving the wealth and well-being of people and businesses. In business for more than 140 years, we’re helping more than 45.5 million customers² plan, insure, invest, and retire, while working to support the communities where we do business, improve our planet, and build a diverse, inclusive workforce. Principal^® is proud to be recognized as one of the World’s Most Ethical Companies³, a member of the Bloomberg Gender Equality Index, and a Top 10 “Best Places to Work in Money Management⁴.” Learn more about Principal and our commitment to sustainability, inclusion, and purpose at principal.com.

Insurance products issued by Principal National Life Insurance Co (except in NY) and Principal Life Insurance Co. Plan administrative services offered by Principal Life. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities offered through Principal Securities, Inc., 800-247-1737, member SIPC and/or independent broker/dealers. Principal Global Investors leads global asset management. Referenced companies are members of the Principal Financial Group®, Des Moines, IA 50392.

BNP Paribas Securities Corp., Bank of America Securities, Inc. and HSBC Securities (USA) Inc. are not an affiliate of any member of the Principal Financial Group.

See the Sustainability Bond offering document and term sheet for additional information. Offering by Principal Life Insurance Company is limited to qualified institutional buyers (QIB’s) through applicable underwriter(s). May not be a suitable investment for QIB’s seeking exposure to green assets. Principal Life is a member of the Principal Financial Group, Des Moines, IA 50392.

Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group. © 2021 Principal Financial Services, Inc. 1744300-082021

¹ As June 30,2021

² As June 30,2021

³ Ethisphere Institute, 2021

⁴ Pensions & Investments, 2020

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