Pearson plc

5 September 2024

Pearson Issues Social Bond

Pearson plc ("Pearson") announces that its subsidiary, Pearson Funding plc, has today priced an issue of £350,000,000 5.375% per cent. Guaranteed Notes due 2034 (the "Notes"), guaranteed by Pearson. The Notes will be admitted to trading on the International Securities Market of the London Stock Exchange. Settlement of the Note issuance is expected on 12 September 2024.

Pearson intends to apply the net proceeds of the Notes, in part or in full, to finance or refinance projects and expenditures that meet the Eligible Categories set out in Pearson's Social Bond Framework. Pearson published its updated Social Bond Framework on 2 September 2024. The framework, which has been prepared in accordance with the 2023 ICMA Social Bond Principles, and the second party opinion by Moody's, are published on the Pearson website.

Sally Johnson, Pearson's Chief Financial Officer, said: "Pearson's purpose is to add life to a lifetime of learning. We are delighted by the interest shown in our Education bond, demonstrating both the financial progress made and the ongoing opportunities Pearson has, alongside the strength our purpose brings to our proposition. Through launching this bond, we emphasise our commitment to ensuring learners around the world can gain access to high quality education. This is an important milestone for Pearson as we further strengthen our long-term liquidity and continue to build a sustainable business that is focused on digital, lifelong learning."

BNP PARIBAS, Citigroup Global Markets Limited and J.P. Morgan Securities plc are Active Bookrunners and Barclays Bank PLC, HSBC Bank plc and Merrill Lynch International are Passive Bookrunners.

Contacts:

Investor Relations                 Jo Russell                                             +44 (0) 7785 451 266

                                                Alex Shore                                            +44 (0) 7720 947 853

                                                Gemma Terry                                        +44 (0) 7841 363 216

                                                Brennan Matthews                                +1 (332) 238-8785

Media                                      

Teneo                                       Ed Cropley                                           +44 (0) 7492 949 346

Pearson                                   Laura Ewart                                          +44 (0) 7798 846 805

Disclaimers: The distribution of this announcement and other information in connection with any offer in certain jurisdictions may be restricted by law and persons who come into possession of this announcement or any document or other information referred to herein should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any jurisdiction.

This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any securities in any jurisdiction. Any securities referred to herein will not be registered under the U.S. Securities Act of 1933, as amended, (the "Securities Act"). Subject to certain exceptions, such securities may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons.

This announcement is directed only at persons who are outside the United Kingdom or (i) are "qualified investors" within the meaning given by Regulation (EU) 2017/1129 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018; (ii) have professional experience in matters relating to investments falling within Article 19(5) of The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 and falling within Article 49 of that Order; and (iii) are otherwise persons to whom this announcement may lawfully be communicated (all such persons together being referred to as "relevant persons"). This announcement must not be acted on or relied on by persons in the UK who are not relevant persons.

The manufacturer target market for the purpose of UK MiFIR product governance is eligible counterparties and professional clients only (all distribution channels). No EU or UK PRIIPs key information document (KID) has been prepared as the Notes are not available to retail in EEA or UK.

FCA/ICMA stabilisation applies.