Project Details
Project
Goldman Sachs Solar ABS Bond Framework Second-Party Opinion
Client
Goldman Sachs
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Jul 2019
Evaluation Summary
Sustainalytics is of the opinion that the Goldman Sachs Solar Green Use of Proceeds Securitized Bonds Framework, updated in July 2019, is credible and impactful, and aligns with 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 – Loans that finance Solar Energy Systems – is aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers the eligible category to have positive environmental impact and to advance the UN Sustainable Development Goal 7.
PROJECT EVALUATION/SELECTION
Loanpal originates the Solar Loans and leverages proprietary technology and processes to evaluate and approve prospective customers. The company’s custom credit-underwriting algorithm helps Loanpal’s credit underwriters to make an immediate and informed decision on the approval of customers for financing. Once a customer meets Loanpal’s underwriting requirements and the project satisfies Loanpal’s criteria, funds are dispersed to the Loanpal-approved Installer at installation. Sustainalytics considers this to be in line with market practice.
MANAGEMENT OF PROCEEDS
The proceeds of the Notes, directed to an underlying trust, will be used to acquire and hold Solar Loans and other related Solar Assets on behalf of the Issuer and the holders of Notes, including Class R Subordinate Notes. Once the Notes are issued, all Solar Loans will be assigned to the underlying trust. Sustainalytics believes that Goldman Sachs’s management of proceeds, through securitization structure, mechanisms, and involved entities, is in line with the market practice.
REPORTING
Goldman Sachs Asset Backed Securities Corp. will publish the allocation of the proceeds in the offering memorandum upon the issuance of the Notes. Loanpal’s Partners utilize models to estimate the aggregate capacity of the solar energy systems that are financed by the Solar Loans, and the total assumed renewable energy produced by the solar energy systems (during assumed useful life), as a part of impact reporting. Sustainalytics views Loanpal’s allocation and impact reporting as aligned with market practice.