Project Details
Project
CRDB Bank Green, Social and Sustainability Bond Framework Second-Party Opinion (2023)
Client
CRDB Bank Plc
Project Type
Green Bond/Loan; Social Bond/Loan; Sustainability Bond/Loan;
Industry Group
Banks
Use of Proceeds
Sustainable agriculture; Sustainable forestry; Sustainable aquaculture/fisheries; Renewable energy; Energy efficiency; Pollution prevention and control; Green buildings; Water/waste water management; Clean transport; Health; Education; SME finance and microfinance; Food security;
Location
Tanzania
Evaluation Date
Mar 2023
Evaluation Summary
USE OF PROCEEDS
The eligible categories for the use of proceeds1 are aligned with those recognized by the Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental and social impacts and advance the UN Sustainable Development Goals, specifically SDGs 1, 2, 3, 4, 5, 6, 7, 11, 12, 14 and 15.
PROJECT EVALUATION AND SELECTION
CRDB Bank’s Sustainable Bond Committee, composed of representatives from the sustainability, treasury, business banking, business risk, legal and investor relations departments, is responsible for selecting eligible projects or assets. CRDB Bank’s environmental and social risk management systems are applicable to all allocation decisions made under the Framework. Sustainalytics considers the project selection process in line with market practice and the risk management systems adequate.
MANAGEMENT OF PROCEEDS
CRDB Bank’s Group Finance will oversee the management of proceeds and track allocation using the Green, Social and Sustainability Bond Register. CRDB Bank intends to fully allocate proceeds within 24 months of issuance. Pending allocation, net proceeds will be temporarily held in cash or other short-term and liquid instruments or invested in CRDB’s treasury liquidity portfolio. This is in line with market practice.
REPORTING
CRDB Bank intends to report on the allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting will include the total amount of net proceeds allocated, the number of eligible loans, the balance of unallocated proceeds, the amount and percentage of new financing versus refinancing and the age of the refinanced loans. In addition, CRDB Bank is committed to reporting on relevant impact metrics. Sustainalytics views the allocation and impact reporting as aligned with market practice.