Project Details
Project
Aozora Bank, Ltd. Green Bond Second-Party Opinion
Client
Aozora Bank, Ltd.
Project Type
Green Bond/Loan
Industry Group
Banks
Use of Proceeds
Green buildings; Renewable energy;
Location
Japan
Evaluation Date
Jan 2021
Evaluation Summary
Sustainalytics is of the opinion that the Aozora Bank, Ltd. Green Bond Framework (The “Framework”) is credible and impactful and aligns with the four core components of the Green Bond Principles 2018 (GBP). This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds, renewable energy and green buildings, are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that the eligible projects will lead to positive environmental impacts and advance the UN Sustainable Development Goals (SDGs) 7 and 9.
PROJECT EVALUATION/SELECTION
The project evaluation and selection process will be carried out by the Bank’s front-office business units and the Financial Management Division. Projects are evaluated and selected by front-office business units based on the eligibility criteria, and the final selection is evaluated by the Financial Management Division. The Bank’s process is in line with market practices.
MANAGEMENT OF PROCEEDS
Aozora Bank’s Financial Management Division will be responsible for the management of the proceeds and will track and manage the allocation of proceeds semi-annually, using a file system for internal management until the maturity of the green bond. The Bank is also committed to holding any unallocated proceeds in cash or cash equivalents. The Bank’s management of proceeds is in alignment with market practices.
REPORTING
Aozora Bank is committed to reporting on the allocation of proceeds and environmental benefits annually until the maturity of green bonds, in the reporting document that will be disclosed on its website. The allocation report will include the amount of proceeds allocated to finance or refinance projects, while the report on environmental benefits will include quantitative and qualitative information such as the amount of CO2 emissions reduced through renewable energy projects and the types and levels of green building certifications obtained. Sustainalytics considers that the Bank’s reporting is aligned with market practices.