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Second-Party Opinion Download

Project Details

Project

Sustainable Financing Framework for Agricultural Bank of China Limited, Singapore Branch Second-Party Opinion

Client

Agricultural Bank of China Limited, Singapore Branch

Project Type

Sustainability Bond/Loan

Industry Group

-

Use of Proceeds

-

Location

China

Evaluation Date

Aug 2019

Evaluation Summary

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

USE OF PROCEEDS

The eligible category for the use of proceeds (i) Renewable Energy, (ii) Energy Efficiency, (iii) Pollution Prevention and Control, (iv) Environmentally Sustainable Management of Living Natural Resources, (v) Clean Transportation, (vi) Green Buildings, (vii) Access to Essential Services, (viii) Affordable Housing, (ix) Employment Generation including through SME Financing/Microfinance are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that the Eligible Sustainable Assets will have a positive environmental impact and contribute to the socio-economic advancement of disadvantaged target populations throughout mainland China and other countries and to advance the UN Sustainable Development Goals 3, 4, 7, 8, 9, 11 and 12.

PROJECT EVALUATION/SELECTION

The project evaluation and selection process is conducted by a dedicated Sustainable Financing Working Group with cross-functional representation and chaired by the Deputy General Manager of Risk Management, which is in line with market practices.

MANAGEMENT OF PROCEEDS

The proceeds of sustainable transactions will be deposited in the general account of Agricultural Bank of China Limited, Singapore Branch (ABC Singapore Branch). ABC Singapore Branch will establish a register recording each specific asset allocated. The unallocated proceeds are to be invested in cash or cash equivalents according to its local liquidity management guidelines, and in line with market practices. ABC Singapore Branch will aim to deploy full allocation of net proceeds to eligible categories within 12 months from drawdown or issuance. This is aligned with market practice.

REPORTING

ABC Singapore Branch commits to disclose annual allocation and impact reporting in line with market practices. The allocation reporting will cover relevant transaction data and impact reporting will cover impact indicators and KPIs for each Green and Social Category. Sustainalytics considers the scope and frequency of reporting to be aligned with market practice.

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