Project Details
Project
Zayed City Schools Social Financing Framework Second-Party Opinion (2022)
Client
BESIX Plenary Education Properties Development LLC
Project Type
Social Bond/Loan
Industry Group
Construction & Engineering
Use of Proceeds
Education
Location
United Arab Emirates (UAE)
Evaluation Date
Oct 2022
Evaluation Summary
Sustainalytics is of the opinion that the Zayed City Schools Social Financing Framework is credible and impactful and aligns with the four core components of the Social Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds – Access to Essential Services – is aligned with those recognized by the Social Loan Principles, which seek to achieve positive socio-economic outcomes for target populations. Sustainalytics considers that investments in the eligible category are expected to increase access to public education in Abu Dhabi and advance the UN Sustainable Development Goals, specifically SDG 4.
PROJECT EVALUATION / SELECTION
BESIX Plenary was established specifically to finance, develop and operate the Zayed City Schools project. BESIX Plenary has processes in place to identify and mitigate common environmental and social risks associated with the eligible project, which are applicable to all allocation decisions made under the Framework. Sustainalytics considers the Project Company’s risk management system to be in line with market practice.
MANAGEMENT OF PROCEEDS
BESIX Plenary will oversee the management of proceeds. The allocation process will be tracked using an internal register. BESIX Plenary intends to allocate net proceeds within 24 months and unallocated proceeds will be held as cash and may be used to repay borrowings under BESIX Plenary’s loan facilities.1 This is in line with market practice.
REPORTING
BESIX Plenary intends to report annually on the allocation and impact of proceeds through a social finance report that will be made available to lenders by an agent. Allocation reporting may include a description of the Zayed City School project, the aggregated amount of allocated proceeds and the balance of unallocated proceeds. The Project Company is also committed to report on relevant social impact metrics where feasible. Sustainalytics views BESIX Plenary’s allocation and impact reporting as aligned with market practice.