Second-Party Opinion Download

Sustainalytics is of the opinion that the BNG Bank Sustainability Bond for Dutch Municipalities is credible and impactful and aligns with the Sustainability Bond Guidelines 2018. This assessment is based on the following:

USE OF PROCEEDS

BNG Bank intends to use the proceeds to finance general purpose loans to best-in-class sustainable municipalities. While the eligibility criteria, best-in-class sustainable municipalities is not directly aligned with the recognized use of proceeds in the Green Bond Principles and Social Bond Principles, the methodology to rate the municipalities uses indicators that align with recognized use of proceeds categories. Sustainalytics considers BNG Bank’s approach as innovative and impactful to increase sustainable practices of municipalities in the Netherlands.

PROJECT EVALUATION/SELECTION

The best-in-class sustainable municipalities are chosen according to the TSC-Telos Rating Methodology. Sustainalytics considers the methodology robust to rate the sustainability of municipalities based on ecological, sociocultural and economic indicators.

MANAGEMENT OF PROCEEDS

BNG Bank’s process to manage the bond’s proceeds are aligned with market practice. BNG Bank has a system to track and monitor the use of proceeds. In addition, unallocated proceeds will be held in accordance with BNG Bank’s liquidity management policy

REPORTING

BNG Bank intends to report on allocation of proceeds in its annual report on an annual basis. In addition, BNG Bank has committed to publishing the BNG Bank Performance Report, including an update on the sustainability scores of the 125 elected municipalities for the BNG Bank 2018 Sustainability Bond. Sustainalytics recognizes that the sustainability performance of municipalities cannot directly be linked to bonds proceeds, which is a limitation of the bond.