Project Details
Project
Community Preservation Corporation Sustainability Bond Framework Second-Party Opinion
Client
Community Preservation Corporation
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Oct 2019
Evaluation Summary
Sustainalytics is of the opinion that the Sustainability Bond Framework is credible and impactful, and aligns with the Sustainability Bond Guidelines 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers Energy Retrofitting and Affordable housing projects to have positive environmental or social impacts and to advance various UN Sustainable Development Goals, in particular Goals 7, 9, 10, and 11.
PROJECT EVALUATION/SELECTION
All projects must comply with CPC’s existing loans approvals process. Additionally, compliance with the green and/or social criteria will be determined as part of the Issuer’s loan due diligence process prior to closing. Sustainalytics considers this to be in line with market practice.
MANAGEMENT OF PROCEEDS
CPC intends to fully allocate the proceeds of its sustainability bond at time of issuance to refinance an identified portfolio of construction loans. In this context, no commitments for ongoing management are required. Sustainalytics considers this to be in line with market practice.
REPORTING
CPC has identified and disclosed the breakdown of project types that will be refinanced by the proceeds of the sustainability bond. CPC also intends to provide annually disclosures related to the Sustainability Bond Sustainalytics considers this to be in line with market practice, and additionally notes that CPC has a demonstrated record of financing impactful projects and reporting where feasible on the overall impacts of its portfolio.