Second-Party Opinion Download

USE OF PROCEEDS

The eligible categories for the use of proceeds - Renewable Capacity, Modernization of Networks and Energy Efficiency in the Community - are aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impact in the Azores and advance the UN Sustainable Development Goals, specifically SDGs 7 and 9.

PROJECT EVALUATION AND SELECTION

EDA’s internal process for evaluating and selecting projects is managed by a cross-functional management team. EDA has an environmental and social risk management process in place which applies to all allocation decisions under the Framework. Sustainalytics considers the project selection process in line with market practice.

MANAGEMENT OF PROCEEDS

EDA’s treasury department will be responsible for management of proceeds. The net proceeds will be managed on a portfolio basis and tracked using an internal management system. EDA intends to allocate net proceeds to eligible assets with 36 months of issuance. EDA may temporarily invest the unallocated proceeds in its treasury liquidity portfolio in cash or cash equivalents. This is in line with market practice.

REPORTING

EDA commits to report on allocation of proceeds on an annual basis until full allocation on the Company website. Allocation reporting will include the total amount of proceeds allocated to each eligible category, the balance of unallocated proceeds, description of the eligible projects and breakdown of the outstanding green bond proceeds. EDA is committed to reporting on relevant impact metrics. Sustainalytics views EDA’s allocation and impact reporting as aligned with market practice.