Project Details
Project
Bayport Management Ltd. Social Bond Framework Second-Party Opinion
Client
Bayport Management Ltd.
Project Type
Social Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Mauritius
Evaluation Date
May 2019
Evaluation Summary
Sustainalytics is of the opinion that the Bayport Management Ltd. Social Bond Framework is credible and impactful, and aligns with the four core components of the Social Bond Principles 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds are aligned with those recognized by the Social Bond Principles, and Bayport has identified relevant target populations for these initiatives. Sustainalytics considers that the projects related to financial inclusion, access to financial services, corporate social investment, and employment generation through Micro and Small-Sized Enterprise (MSE) financing and microfinance will lead to positive social impacts and advance the UN Sustainable Development Goals, in particular Goal 8: Decent Work and Economic Growth.
PROJECT EVALUATION/SELECTION
After passing Bayport’s existing credit approval screens, eligible assets will be tagged by the group-level credit and capital markets departments for inclusion in the pool of eligible assets. This pool will be managed by the deal maintenance team of the capital markets department. This process is in line with market practice.
MANAGEMENT OF PROCEEDS
Bayport will ensure that at all times the total value of the pool of eligible assets meets or exceeds the total amount of social bonds outstanding. Ongoing review will be carried out, and should an asset no longer qualify as eligible, then that project may be replaced with another one that meets the eligibility criteria. Unallocated proceeds will be managed in accordance with Bayport’s liquidity policy. This process is in line with market practice.
REPORTING
Bayport will report annually on the use of proceeds, for as long as there are social bonds outstanding. This reporting will include the number and the total volume of loans provided in each country, the share of net proceeds for new financing compared to refinancing, and examples of assets that have been funded. Bayport will also provide information on how loan recipients intend to use the funds. This process is in line with market practice.