Project Details
Project
Adani Transmission Ltd. Green Loan Framework Second-Party Opinion (2021)
Client
Adani Transmission Ltd.
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
India
Evaluation Date
Jul 2021
Evaluation Summary
Sustainalytics is of the opinion that the Adani Transmission Ltd. Green Loan Framework is credible and impactful and aligns to the four core components of the Green Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds, Renewable Energy, is aligned with those recognized by the Green Loan Principles. Sustainalytics considers that investments in the eligible category is expected to support the transmission of clean energy across the Indian states of Gujarat and Maharashtra and advance the UN Sustainable Development Goals, specifically SDG 7 and 9.
PROJECT EVALUATION / SELECTION
The project evaluation and selection process is carried by Adani Transmission Ltd’s Board of Directors who are also responsible for the Company’s business strategy, financial activities and sustainability goals. The eligible projects are selected based on the Company’s ESG strategic pillars and according to the Framework’s eligibility criteria. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
The net loan proceeds will be monitored and tracked by the relevant Finance and Accounting Team, overseen by the company’s Chief Financial Officer. The proceeds will be tracked using a dedicated proceeds account. Additionally, the funds' utilization by each project will be reviewed by the Lender’s Technical Advisor. Pending full allocation, unallocated proceeds will be held in dedicated project cash account of Project Special Purpose Vehicles (SPV) or in cash or cash-equivalent instruments. This is in line with market practice.
REPORTING
Adani Transmission Ltd. intends to report on the allocation of proceeds to the lenders of eligible projects on a monthly basis. Allocation reporting will provide relevant transaction information such as the construction progress, the total amount of funds that are drawn and the expenses to which they are being deployed. In addition, Adani Transmission Ltd. is committed to reporting on relevant impact metrics annually. Sustainalytics views the Company’s allocation and impact reporting as aligned with market practice.