Project Details
Project
Félagsbústadir Social Bond Second-Party Opinion
Client
Félagsbústadir
Project Type
Social Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Iceland
Evaluation Date
Feb 2019
Evaluation Summary
Sustainalytics is of the opinion that the Félagsbústadir Social Bond Framework is credible and impactful, and aligns with the four core components of the Social Bond Principles 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds is aligned with those recognized by the Social Bond Principles. Sustainalytics considers that investments in affordable housing will lead to positive social impacts for target populations and advance the UN Sustainable Development Goals, in particular 1 – No Poverty and 11 – Sustainable Cities and Communities.
PROJECT EVALUATION/SELECTION
Félagsbústadir has established a two-step process by which projects are first identified and screened internally, and then submitted to a Committee with representatives from the management teams at Reykjavik Social Housing (RSH), as well as the City of Reykjavík’s Department of Welfare for approval. This is in line with market practice.
MANAGEMENT OF PROCEEDS
An amount equal to the net proceeds of the social bond(s) will be credited to a specific social account. Pending allocation, funds may be held in various short-term investments such as government bonds and money market deposits. This is in line with market practice.
REPORTING
Félagsbústadir will issue an Annual Impact Report, describing both impact and allocation reporting. Allocation reporting will include the total amount allocated to the underlying use of proceeds areas, the share of financing and refinancing, and the total amount allocated each year, while impact reporting will include relevant quantitative metrics on rental costs and populations served. This is in line with market practice.