Second-Party Opinion Download

Sustainalytics is of the opinion that the Banque Internationale à Luxembourg Green Bond Framework is credible and impactful and aligns to the four core components of the Green Bond Principles 2021. This assessment is based on the following: 

USE OF PROCEEDS

The eligible category for the use of proceeds, Green Buildings, is aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7 and 11. 

PROJECT EVALUATION / SELECTION

Banque Internationale à Luxembourg (“BIL”)’s Green Bond Committee comprised of the Head of Sustainable Development, Head of Long-Term Funding and members from the Asset & Liability Management Committee, will be responsible for the selection and approval of all eligible projects. BIL evaluates the eligible portfolio to ensure it aligns with the Company’s environmental and social risk policies including, Code of Ethics, ESG Policy and Sustainable Procurement Policy. Sustainalytics considers the project selection process in line with market practice. 

MANAGEMENT OF PROCEEDS

BIL intends to fully allocate proceeds within 24 months and has defined 36 months as the lookback period for refinancing of projects. Unallocated proceeds will be temporarily reinvested in accordance with BIL’s Investment Guidelines in cash, deposits, money market instruments or additional liquid short-term marketable instruments. BIL’s Green Bond Committee will be responsible for the managing and tracking of proceeds via an internal tracking system. This is in line with market practice. 

REPORTING

BIL intends to report on allocation of proceeds on its website on an annual basis until full allocation. The allocation reporting will include an overview of the green bond(s) outstanding under the Framework, size of the eligible portfolio, balance of unallocated proceeds and the proportion of financed and refinanced projects. In addition, BIL is committed to reporting on relevant impact metrics. Sustainalytics views BIL’s allocation and impact reporting as aligned with market practice. BIL has also committed to an independent review of its annual reporting, which is in line with best market practice.