Project Details
Project
Century Affordable Development Sustainability Bond Framework Second Party Opinion (2021)
Client
Century Affordable Development Inc.
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Oct 2021
Evaluation Summary
CADI has developed the Sustainability Bond Framework under which the California Municipal Finance Authority will issue bonds, and lend the proceeds to Century CityView. Sustainalytics is of the opinion that the Century Affordable Development Sustainability Bond Framework is credible and impactful and aligns with the four core components of the Sustainability Bond Guidelines 2021, Green Bond Principles 2021 and Social Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds – Affordable Housing and Energy Efficiency – are aligned with those recognized by the Green Bond Principles and the Social Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive social impacts and advance the UN Sustainable Development Goals (“SDGs”), specifically SDGs 1, 7 and 10.
PROJECT EVALUATION / SELECTION
Century CityView will use the net proceeds of the sustainability bonds to finance the acquisition of an affordable housing complex that has been rehabilitated with energy-efficient measures. The designated Project Manager will assess social and environmental risks associated with the project. Sustainalytics considers Century CityView’s risk management system to be adequate and the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Upon issuance, Century CityView, through direction provided to the Trustee, intends to deposit net bond proceeds into separate operating accounts for the acquisition of the selected project, a repair and replacement fund to fund modest rehabilitation and ongoing maintenance, a debt service reserve fund, and for the cost of issuance. In this context, no commitments for ongoing management are required. Sustainalytics considers this to be in line with market practice.
REPORTING
Century CityView intends to disclose upon settlement of the transaction the full amount allocated to the project. In addition, Century CityView has reported relevant impact metrics in the offering document and will disclose financial and operating results quarterly and annually via the Municipal Security Rulemaking Board’s Electronic Municipal Market Access (EMMA) system pursuant to a continuing disclosure undertaking. Sustainalytics considers this to be in line with market practice.