Second-Party Opinion Download

Sustainalytics is of the opinion that the ArmSwissBank Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Climate Change Mitigation - Energy, Climate Change Mitigation - Low Carbon Transportation, Climate Change Adaptation – Agriculture and Forestry, The Sustainable Use and Protection of Water and Marine Resources, The Transition to a Circular Economy/Waste Management, Pollution Prevention and Control, and The Protection and Restoration of Biodiversity and Ecosystems – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 9, 11, 12, 15.

PROJECT EVALUATION AND SELECTION

ArmSwissBank has established a Green and Sustainable Bond Committee, which will be responsible for evaluating and selecting projects in line with the Framework’s eligibility criteria. ArmSwissBank manages environmental and social risks associated with eligible projects through an integrated assessment approach. Sustainalytics considers the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

ArmSwissBank’s Lending department will be responsible for managing the proceeds on a portfolio basis and will track their allocation using a special programme line within the core banking system. ArmSwissBank intends to allocate proceeds within 36 months of each issuance. Pending full allocation, unallocated proceeds will be held in cash, cash equivalents or other liquid instruments, and managed in line with the Bank’s liquidity management framework. This is in line with market practice.

REPORTING

ArmSwissBank will report annually on the allocation of proceeds and their corresponding impact through Sustainability or Green Bond Use of Proceeds Reports until full allocation. Allocation reporting will include: i) the amount of proceeds allocated by eligible project category and, optionally, examples of loans financed; ii) the total amount allocated within the reporting period, including proportions of new and refinanced assets; iii) the amount of unallocated proceeds in cash or cash equivalents; and iv) if available, a breakdown of the regions within Armenia where the proceeds have been deployed. Sustainalytics views ArmSwissBank’s allocation and impact reporting as aligned with market practice.