Project Details
Project
FortiFi Green Bond Private Placement Memorandum Second-Party Opinion
Client
FortiFi Financial, Inc.
Project Type
Green Bond/Loan
Industry Group
Diversified Financials
Use of Proceeds
Renewable energy; Energy efficiency;
Location
U.S.
Evaluation Date
Mar 2021
Evaluation Summary
Sustainalytics is of the opinion that the FortiFi 2021-1 Private Placement Memorandum and the Green Bond Language contained in therein 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 is aligned with those recognized by the Green Bond Principles. Sustainalytics considers that the financing of home upgrades related to renewable energy, energy efficiency, water conservation, and disaster resiliency will lead to positive environmental impacts and advance the UN Sustainable Development Goals, in particular Goals 6, 7, and 11.
PROJECT EVALUATION/SELECTION
FortiFi’s financing is intended to be provided only for eligible PACE projects, as defined by the PACE programs in California and Florida, respectively. FortiFi intends to reference a list of eligible product types in assessing eligibility. This is in line with market practice.
MANAGEMENT OF PROCEEDS
The net proceeds of FortiFi Financial’s green bond issuance are intended to be deposited in a segregated account and disbursed by the Program Administrator to refinance eligible projects. This is in line with market practice.
REPORTING
FortiFi Financial will disclose, in its Private Placement Memorandum, the total amount to be allocated. FortiFi makes disclosures on key impact parameters such as energy savings, emissions reductions, and water savings, as part of its compliance with the regulatory requirements, and is developing an approach to impact reporting. This is in line with market practice.