Second-Party Opinion Download

Sustainalytics is of the opinion that the BDMG Sustainability Bond Framework is credible, impactful and aligns with the Sustainability Bond Guidelines 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Sustainable Agriculture and Sustainable Management of Living Natural Resources, Renewable Energy and Energy Efficiency, Sustainable Water and Wastewater Management, Clean Transportation, Pollution Prevention and Control, Access to Essential Services - Health, Access to Essential Services - Education, Socioeconomic Empowerment - Gender inclusion, Employment Generation - Micro and small enterprises, Affordable Basic Infrastructure - Inclusive and sustainable urbanization, and Access to Essential Services - Economic recovery after disasters – 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 Goals 3, 4, 5, 6, 7, 8, 9, 11, 12 and 15.

PROJECT EVALUATION/SELECTION

BDMG’s Credit and Renegotiation Committee will be responsible for evaluating and approving projects against the eligibility and exclusionary criteria and in alignment with the Bank’s internal socio-environmental policies. The Committee is comprised of representatives from various departments including, Credit Analysis, Operations, Credit Management, Products, Risks and Internal Control, Finance and Legal. Sustainalytics considers the project selection process in line with market practice.

MANAGEMENT OF PROCEEDS

BDMG’s Financial Management department will oversee the management of proceeds, which will be registered as a unique source by the Bank’s established internal accounting functions. Pending allocation, proceeds will be held in the Bank’s cash account or invested in high-liquidity and low-risk instruments, and will in no case be invested in projects which are misaligned with the goals of the Framework. This is in line with market practice.

REPORTING

BDMG intends to report on both the allocation and impact of proceeds on an annual basis. Allocation reporting will include a breakdown by eligibility category and region, while impact reporting will include relevant KPIs, presented on an aggregate level per use of proceeds category, as well as representative case studies. BDMG has committed to providing at least one impact indicator for each eligible category. This is in line with market practice.