Project Details
Project
Millennium bcp Green, Social and Sustainability Bond Framework Second-Party Opinion (2021)
Client
Banco Comercial Português, S.A.
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Renewable energy; Green buildings; Energy efficiency; Clean transport; Water/waste water management; Sustainable agriculture; COVID-19 Response; SME finance and microfinance; Health; Education; Socio-economic advancement;
Location
Portugal
Evaluation Date
May 2021
Evaluation Summary
USE OF PROCEEDS
The eligible categories for the use of proceeds are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 2, 3, 4, 6, 7, 8, 9, 10, 11, and 12.
PROJECT EVALUATION AND SELECTION
Millennium bcp’s internal process in evaluating and selecting projects is overseen by the Green, Social, Sustainability Bond Working Group (or the “Working Group”) that is expected to meet on a semi-annual basis. The Working Group will also be responsible for approving the allocation of net proceeds, replacing the ineligible green and social assets, validating allocation and impact reporting, and updating the Framework. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Millennium bcp’s processes for management of proceeds is overseen by the Bank’s Medium- and Long-Term Funding Department. The Bank tracks and allocates proceeds through a portfolio approach and intends to allocate all proceeds within 36 months after issuance. Pending allocation of net proceeds or in case of insufficient eligible assets, Millennium intends to invest the balance of the net proceeds in cash, cash equivalent, or other liquid instruments that are in line with the Bank’s liquidity management policy. This is in line with market practice.
REPORTING
Millennium intends to report on allocation and impact of proceeds on its website on an annual basis until full allocation. Millennium’s allocation report may include the total amount of bonds issued, total amount of proceeds allocated by category, and amount of unallocated proceeds. In addition, Millennium is committed to reporting on relevant impact metrics. Sustainalytics views Millennium’s allocation and impact reporting as aligned with market practice.