Second-Party Opinion Download

USE OF PROCEEDS

The eligible categories for the use of proceeds – Renewable Energy, Green Buildings, Clean Transportation, Energy Efficiency, Sustainable Water and Wastewater Management, Pollution Prevention and Control, Affordable Basic Infrastructure, and Access to Essential Services: Healthcare – are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles, and Social Loan Principles. Sustainalytics considers that investments in the eligible categories are expected to lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 3,6,7,9 and 12.

PROJECT EVALUATION AND SELECTION

Bank Pekao’s Sustainable Finance Commission will be responsible for the evaluation and selection of assets and projects in line with the eligibility criteria. The Commission will further verify that any associated environmental and social risks are identified and mitigated prior to financing, in line with Bank Pekao’s normal lending policies and processes. Sustainalytics considers the risk management systems to be adequate and the project evaluation and selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Bank Pekao’s Capital Allocation and Assets and Liabilities Management Department will be responsible for the management of proceeds on a portfolio basis and track the allocation of proceeds using internal information systems. Bank Pekao intends to allocate all the proceeds within 24 months of issuance. Pending allocation, proceeds will be temporarily held in cash, cash equivalents and will be invested in ESG-oriented funds, where feasible. Sustainalytics considers this process to be in line with market practice.

REPORTING

Bank Pekao commits to report on the allocation of proceeds and corresponding impact on its website on an annual basis until full allocation. Allocation reporting will include information such as the total value of the eligible portfolio, the amount of proceeds allocated to eligible projects, the balance of net proceeds, the amount of net proceeds allocated per ICMA use of proceeds category and by the relevant UN SDGs promoted, the geographical split and the share of financing versus refinancing. Sustainalytics views Bank Pekao’s allocation and impact reporting commitments as aligned with market practice.