Project Details
Project
Electric Networks of Armenia Green Bond and Loan Framework Second-Party Opinion (2023)
Client
Electric Networks of Armenia CJSC
Project Type
Green Bond/Loan
Industry Group
Energy Services
Use of Proceeds
Energy efficiency
Location
Armenia
Evaluation Date
Dec 2023
Evaluation Summary
USE OF PROCEEDS
The eligible category for the use of proceeds, Energy and Resource Efficiency, is aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 7.
PROJECT EVALUATION AND SELECTION
ENA’s internal process for evaluating and selecting projects is supported by its technical and environmental teams, overseen by the finance directorate. Selected projects for financing under the Framework will receive final approval from ENA’s Green Financing Committee. ENA’s legal department will be responsible for the environmental and social risk management process for all allocation decisions made under the Framework. Sustainalytics considers the project selection process and environmental and social risk management process in line with market practice.
MANAGEMENT OF PROCEEDS
ENA’s process for management of proceeds is overseen by the Green Financing Committee chaired by the CFO. ENA has a dedicated system in place to ensure traceability of funds allocated to the selected projects. ENA intends to reach full allocation within 18 months of issuance. Unallocated proceeds will be held in cash, deposits or other forms of short-term liquid instruments. The Framework excludes temporary allocation to GHG-intensive and controversial activities. This is in line with market practice.
REPORTING
ENA commits to report on allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting will include information on the amount of unallocated funds. In addition, ENA intends to report on relevant impact metrics. Sustainalytics views ENA’s allocation and impact reporting as aligned with market practice.