Second-Party Opinion Download

USE OF PROCEEDS

The eligible categories for the use of proceeds – Sustainable Living Environments; Health, Culture and Leisure; Education and Work; and Integration, Trust and Safety – are 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 categories will lead to positive social impacts and advance the UN Sustainable Development Goals, specifically SDGs 3, 4, 8, 10, 11 and 16.

PROJECT EVALUATION AND SELECTION

The City of Malmö’s Social Financing Committee, which comprises experts on social sustainability and finance from the City of Malmö’s administrative units and city-held companies, is responsible for the review, evaluation and approval of the eligible social investments to be financed with proceeds from social bond issuances under the City of Malmö Social Bond Framework. The City of Malmö adheres to Swedish national legislation and its policy standards to identify and manage environmental and social risks associated with investments in projects under the Framework. Sustainalytics considers the risk management systems and project selection process to be in line with market best practice.

MANAGEMENT OF PROCEEDS

The City of Malmö’s Finance Department will manage net proceeds from issuances under the Framework on a portfolio basis and track the allocation of proceeds using a social bond register. The City of Malmö will allocate net proceeds within 12 months of issuance. Pending full allocation, unallocated proceeds may be held in bank deposits with an approved credit rating or in short-term interest-bearing securities, in compliance with the City of Malmö’s financial policy. This is in line with market expectations.

REPORTING

The City of Malmö commits to report on the allocation of proceeds and the corresponding impact on its website on an annual basis. Allocation reporting will include information on the amount of proceeds allocated to each eligible project category and sub-category, the share of financing versus refinancing and the share of unallocated proceeds. Sustainalytics views the City of Malmö’s allocation and impact reporting as aligned with market practice.