Project Details
Project
First Investment Bank AD Green Finance Framework Second-Party Opinion (2023)
Client
First Investment Bank AD
Project Type
Green Bond/Loan
Industry Group
Banks
Use of Proceeds
Green buildings; Renewable energy; Energy efficiency; Clean transport; Sustainable agriculture; Sustainable forestry; Pollution prevention and control; Eco-efficient products; Water/waste water management; Climate change adaptation;
Location
Bulgaria
Evaluation Date
Aug 2023
Evaluation Summary
Sustainalytics is of the opinion that the First Investment Bank AD Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 and the Green Loan Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds are aligned with those recognized by the Green Bond Principles 2021 and Green Loan Principles 2023. Sustainalytics considers that investments in the eligible categories are expected to deliver positive environmental impacts, and advance the UN Sustainable Development Goals, specifically SDGs 2, 6, 7, 9, 11, 12, 13, 14 and 15.
PROJECT EVALUATION AND SELECTION
Fibank’s Credit Council will be responsible for evaluating and selecting eligible projects that are in line with the eligibility criteria. First Investment Bank has in place internal risk functions and procedures that incorporate ESG factors and associated risks for all allocation decisions. Sustainalytics considers these risk management systems to be adequate, and the project evaluation and selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Fibank’s Credit Council will be responsible for the management of proceeds on a portfolio basis and will track the allocation of proceeds using an internal eligible projects portfolio. Fibank intends to allocate all proceeds to eligible assets within 24 months of issuance and pending allocation, proceeds may be temporarily held in money market instruments, cash or cash equivalents. Sustainalytics considers this process to be in line with market practice.
REPORTING
Fibank’s commits to report on the allocation of proceeds and corresponding impact in its allocation and impact report which will be published on its website on an annual basis until full allocation. Allocation reporting will include information such as the amount of net proceeds outstanding, the amount of proceeds allocated to eligible projects, and the balance of unallocated proceeds. Where feasible, Fibank shall also disclose the net proceeds allocated per use of proceeds category, the geographical distribution and the balance of unallocated proceeds. In addition, Fibank is committed to reporting on relevant impact metrics. Sustainalytics views Fibank’s allocation and impact reporting as aligned with market practice.