Project Details
Project
Elixir Group Green Bond Framework Second-Party Opinion (2025)
Client
Elixir Group
Project Type
Green Bond/Loan
Industry Group
Chemicals
Use of Proceeds
Sustainable agriculture
Location
Serbia
Evaluation Date
Jan 2025
Evaluation Summary
Sustainalytics is of the opinion that the Elixir Group Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds, Premium TMAP Fertilizer Production Plant, is aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 2 and 12.
PROJECT EVALUATION AND SELECTION
Elixir follows a three-step process for project evaluation and selection. Elixir’s Finance and Investment Committee first assesses and shortlists proposals for potential projects. The ESG and Strategic Planning Team is responsible for the identification and management of environmental and social risks associated with eligible projects. Elixir’s Supervisory Board subsequently selects and approves projects evaluated by the committees. Sustainalytics considers the project evaluation and selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Elixir’s Supervisory Board will be responsible for the management of net proceeds and will track their allocation using an internal tracking system through a portfolio approach. Elixir intends to allocate proceeds within 24 months of issuance. Pending full allocation, unallocated proceeds will be held temporarily as cash or cash equivalents in the Group’s regular business operations account. This is in line with market practice.
REPORTING
Elixir will report on the allocation of proceeds and corresponding impact in its Sustainability Report, which will be published on its website on an annual basis until full allocation. Allocation reporting will include information about the financed project, the balance of unallocated proceeds, if any, and the share of financing versus refinancing. The allocation of proceeds will be reviewed by an external auditor or an independent third party annually until full allocation and until maturity in the event of material developments. Impact reporting will include relevant environmental impact metrics, where available, such as tons of virgin materials substituted by TMAP production residues per year, thermal energy and electricity avoided by using crude phosphoric acid (in kWh/year) and avoided GHG emissions due to closer distribution destinations and utilization of blue/green ammonia (in tCO2e). Sustainalytics views Elixir’s allocation and impact reporting as aligned with market practice.