Bosam Social Bond Framework Second-Party Opinion (2021)
Bosam Group Holding AB
Use of Proceeds
Sustainalytics is of the opinion that the Bosam Social Bond Framework is credible and impactful and aligns with the four core components of the Social Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Affordable Housing, Access to Essential Services (Financing and financial services), and Socio-economic Advancement and Empowerment (equitable access to and control over assets) – are aligned with those recognized by the Social Bond Principles, which 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 8 and 11.
PROJECT EVALUATION / SELECTION
Bosam will establish a Social Bond Work Team comprised of members from Bosam’s management, Bosam’s board and identified external and independent social organizations, which will together ultimately review eligible projects. Bosam’s environmental and social risk management policy and processes apply to all allocation decisions made under the Framework, which Sustainalytics views as adequate. Sustainalytics considers the project evaluation and selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Bosam will use a third-party fund administrator, Intertrust, to track the allocation of bond proceeds. Bosam intends to fully allocate bond proceeds within 24 to 36 months after issuance. While the bonds remain outstanding, the balance of the tracked net proceeds will be periodically adjusted to match allocations to eligible projects. Investors will be called upon to disburse capital only after project completion. This is aligned with market practice.
Bosam intends to report on the allocation of proceeds on its website on an annual basis until the maturity of the social bonds issued under the Framework. In addition, Bosam is committed to reporting on relevant impact metrics. Sustainalytics views Bosam’s allocation and impact reporting as aligned with market practice.