Project Details
Project
BX Commercial Mortgage Trust 2022-AHP, Commercial Mortgage Pass-Through Certificates, Series 2022‐AHP Social Bonds Framework (2022)
Client
BX Commercial Mortgage Trust 2022-AHP
Project Type
Social Bond/Loan
Industry Group
Banks
Use of Proceeds
Affordable housing
Location
U.S.
Evaluation Date
Jan 2022
Evaluation Summary
Sustainalytics is of the opinion that the BX Commercial Mortgage Trust 2022-AHP, Commercial Mortgage Pass-Through Certificates, Series 2022‐AHP Social Bonds 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 category for the use of proceeds, Affordable Housing, is 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 category will lead to positive social impacts and advance the UN Sustainable Development Goals, specifically SDG 11.
PROJECT EVALUATION / SELECTION
Wells Fargo Commercial Mortgage Securities, Inc.’s (the “Depositor”) and Wells Fargo Bank, National Association’s (“Wells Fargo”) process in evaluating and selecting the eligible loan entailed assessment by Wells Fargo’s internal risk committees. Wells Fargo has a dedicated environmental and social risk assessment system that is applicable to the allocation decision made under the Framework. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Proceeds from the issuance will be fully allocated immediately upon issuance. Hence, there will be no unallocated net proceeds to manage after the securitization closing. Wells Fargo further confirms that there is no flexibility to re-allocate the use of proceeds or have any temporary use of proceeds. This is in line with market practice.
REPORTING
Wells Fargo will provide an offering circular to investors containing information on the mortgage loan, the properties and their key affordability features. As all net proceeds will be allocated upon issuance, there will be no further reporting throughout the lifetime of the instruments. Sustainalytics considers the reporting process to be in line with market practice.