Second-Party Opinion Download

Sustainalytics is of the opinion that the Agricultural Bank of China Limited (ABC), Singapore Branch Sustainable Financing Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, Green Loan Principles 2021, ASEAN Sustainability Bond Standards 2018 and Social Loan Principles 2021. This assessment is based on the following:  

USE OF PROCEEDS

The eligible categories for the use of proceeds –  Renewable Energy, Energy Efficiency, Pollution Prevention and Control, Environmentally Sustainable Management of Living Natural Resources and Land Use, Clean Transportation, Green Buildings, Climate Change Adaptation, Sustainable Water and Wastewater Management, Access to Essential Services, Affordable Housing, Employment Generation –  are aligned with those recognized by the Green Bond Principles, Social Bond Principles, ASEAN Sustainability Bond Standards, Green Loan Principles, and Social Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 3, 4, 6, 7, 8, 9, 11, 12, and 15. 

PROJECT EVALUATION / SELECTION

ABC Singapore Branch’s Credit Committee has formed a Sustainable Financing Working Group chaired by the Deputy General Manager which is responsible for reviewing, selecting and validating eligible assets under the Framework. ABC Singapore Branch’s environmental and social risk management systems are applicable for all allocation decisions in the Framework. Sustainalytics considers the risk management systems to be adequate and the project selection process in line with market practice.

MANAGEMENT OF PROCEEDS

ABC Singapore Branch will establish a register to record proceeds allocation through its internal system. ABC Singapore Branch intends to reach full allocation within 24 months of the respective issuance. Pending allocation, proceeds may be held in cash or cash equivalents instruments following local liquidity management guidelines. This is in line with market practice.

REPORTING

ABC Singapore Branch intends to report on allocation of proceeds on its website on an annual basis until full allocation. The allocation report will contain information about the amount of net proceeds allocated to eligible assets, share of financing versus refinancing and the balance of unallocated proceeds. In addition, ABC Singapore Branch is committed to reporting on relevant impact metrics. Sustainalytics views Agricultural Bank of China Limited, Singapore Branch’s allocation and impact reporting as aligned with market practice.