Second-Party Opinion Download

USE OF PROCEEDS

The eligible categories for the use of proceeds – Access to Essential Services - Education, Access to Essential Services – Healthcare, Affordable Housing, and Socioeconomic Advancement and Empowerment – are aligned with those recognized by the Social Bond Principles that seek to achieve positive socio-economic outcomes for target populations. Sustainalytics considers that investments in the eligible categories will lead to positive social impacts and advance the UN Sustainable Development Goals, specifically SDGs 3, 4, 10 and 11.

PROJECT EVALUATION AND SELECTION

Belfius has established a Green & Social Bond Committee which will be responsible for evaluating and selecting projects in line with the Framework eligibility criteria. The committee, which meets on a quarterly basis, consists of the heads of ESG, Long-Term Funding and Structured Finance, as well as representatives from commercial business units. Belfius’ credit committee assesses the environmental and social risks associated with borrowers’ activities, in line with its credit policies and Transition Acceleration Policy. Sustainalytics considers these environmental and social risk management systems to be adequate and the project selection process to be aligned with market practice.

MANAGEMENT OF PROCEEDS

Belfius’ Green & Social Bond Committee is responsible for the management of proceeds. It will monitor the social portfolio with the allocated eligible social assets individually listed in the internal information system. Belfius has confirmed to Sustainalytics that it intends to allocate the proceeds immediately after issuance. Any unallocated proceeds will be temporarily invested in accordance with Belfius’ internal policies. This is in line with market practice.

REPORTING

Belfius commits to report on the allocation of proceeds on its website on an annual basis while any social bond is outstanding. Allocation reporting will include the total amount of social bonds, the social portfolio including a breakdown by eligible category, and the balance of unallocated proceeds, if any. In addition, Belfius intends to report on relevant impact metrics. Sustainalytics views Belfius’ allocation and impact reporting as aligned with market practice.