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Second-Party Opinion Download

Project Details


Frost CMBS 2021-1 Green Securitized Bond Framework Second-Party Opinion (2021)


Frost CMBS 2021-1 DAC

Project Type

Green Bond/Loan

Industry Group

Diversified Financials

Use of Proceeds

Energy efficiency



Evaluation Date

Oct 2021

Evaluation Summary

Sustainalytics is of the opinion that the Frost CMBS 2021-1 Green Securitized Bond  Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 and the Green Loan Principles 2021. This assessment is based on the following: 


The eligible category for the use of proceeds – Energy Efficiency – is aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7 and 9. 


Frost CMBS 2021-1 DAC (“Frost CMBS”) has selected and assessed the eligible assets along with the loan originator, Goldman Sachs. The mortgage loan was provided through approvals from Goldman Sachs’ various internal committees to refinance the eligible assets. A technical and environmental review has been carried out on the assets to mitigate associated environmental and social risks as part of Goldman Sachs’ due diligence process. Sustainalytics considers the project selection process to be in line with market practice and the risk management systems to be adequate. 


Frost CMBS intends to use the net proceeds from mortgage-backed notes to refinance the eligible loan for the refinancing of the energy efficient warehousing assets. As a result, there will be no balance of funds to be invested. This is in line with market practice. 


Frost CMBS will report on the allocation of net proceeds on a quarterly basis until the maturity of the green securitization. Allocation reporting will include the outstanding balance of the loan, prepayment amounts, default amounts and information on losses amongst others. An external third-party will review the allocation reporting. In addition, Frost CMBS is committed to reporting on relevant impact metrics, such as sustainability rating status or carbon footprint. Sustainalytics views Frost CMBS’ allocation and impact reporting as aligned with market practice.