Project Details
Project
Doha Bank Sustainable Finance Framework Second-Party Opinion (2023)
Client
Doha Bank
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Green buildings; Renewable energy; Energy efficiency; Clean transport; Health; Education; SME finance and microfinance;
Location
Qatar
Evaluation Date
May 2023
Evaluation Summary
Sustainalytics is of the opinion that the Doha Bank Sustainable Finance Framework is credible and impactful and aligned with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, Green Loan Principles 2023 and Social Loan Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Green Buildings, Renewable Energy, Energy Efficiency, Clean Transportation, Healthcare, Education, Support to SMEs and Micro-finance – are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles and Social Loan Principles. Sustainalytics considers that investments in the eligible categories are expected to lead to positive environmental and/or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 3, 4 ,6, 7, 8 and 11.
PROJECT EVALUATION AND SELECTION
Doha Bank’s ESG Bond Committee will evaluate, select and monitor eligible projects in line with the eligibility criteria. The ESG Bond Committee comprises members of Treasury, Wholesale and Retail Banking, Investor Relations, Market and Credit Risk, Finance and Strategy departments. The committee will assess potential environmental and social risks associated with all the allocation decisions made under the Framework, including any negative externalities that may result from the financing of eligible assets. Sustainalytics considers these risk management systems to be adequate and the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Doha Bank’s Treasury division will be responsible for the management and allocation of proceeds using an internal tracking system through a portfolio approach. Doha Bank intends to allocate proceeds in full within 24 months of issuance. Pending full allocation, proceeds will be temporarily held in Doha Bank’s treasury liquidity portfolio, in cash or other short-term and liquid instruments. This is in line with market practice.
REPORTING
Doha Bank intends to report annually on the allocation of proceeds and corresponding impact in a Sustainable Finance Report, which will be published on its website, until the outstanding instruments reach maturity. Allocation reporting may include metrics such as the size of the eligible asset pool, the total amount of proceeds allocated to eligible assets, the number of new assets added to the eligible portfolio on an annual basis and the balance of unallocated proceeds. Sustainalytics views Doha Bank’s allocation and impact reporting commitments as aligned with market practice.