Second-Party Opinion Download

Sustainalytics is of the opinion that the EDC Green Bond Framework is credible and impactful and aligns to the four core components of the Green Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible category for the use of proceeds, Renewable Energy, is aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers that the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 7.

PROJECT EVALUATION/SELECTION

EDC’s internal process in evaluating and selecting projects is handled by the Business Development team. The Business Development Team will ensure that the projects comply with the eligibility criteria set in the Framework. Sustainalytics considers the project selection process in line with market practice.

MANAGEMENT OF PROCEEDS

The Finance team is responsible for the management of proceeds. EDC aims at reaching full allocation within three years following green bond issuance. Pending full allocation, EDC may temporarily invest proceeds in cash or cash equivalents, or use the proceeds to repay or prepay debts, or use the proceeds following its internal liquidity management policies and strategies. This is in line with market practice.

REPORTING

EDC intends to report on allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting will include allocation of the net proceeds and balance of unallocated proceeds. In addition, EDC is committed to reporting on relevant impact metrics, such as installed capacity and electricity generation. Sustainalytics views EDC’s allocation and impact reporting as aligned with market practice.