Second-Party Opinion Download

Sustainalytics is of the opinion that the Hyundai Motor Group Metaplant America, LLC Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 and Green Loan Principles 2023. This assessment is based on the following:

USE OF PROCEEDS

The eligible category for the use of proceeds, Clean Transportation, is aligned with those recognized by the Green Bond Principles 2021 and Green Loan Principles 2023. Sustainalytics considers that investments in the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 9.

PROJECT EVALUATION AND SELECTION

HMGMA’s Finance division and Environmental Health & Safety department will be responsible for evaluating and selecting projects in accordance with the eligibility criteria under the Framework. HMGMA will apply internal policies and management processes to address environmental and social risks associated with the projects financed. Sustainalytics considers the project selection process and the risk management system to be in line with market practice.

MANAGEMENT OF PROCEEDS

HMGMA’s Finance Division will manage and track the allocation of proceeds through an internal information system. HMGMA intends to allocate proceeds within 12 months of issuance. Pending full allocation, proceeds will be temporarily held or invested in cash, cash equivalents or highly stable financial assets in accordance with HMGMA’s internal fund management policies. This is in line with market practice.

REPORTING

HMGMA commits to report on the allocation of proceeds for public issuances on its website on an annual basis until full allocation. For non-public issuances, HMGMA will report directly to lenders or investors upon request. HMGA will also report on the impact of the proceeds annually. The reports for bond transactions will be published on its website, while the impacts for loan transactions will be directly provided to the lenders. Allocation reporting will include details of eligible projects, the total amount of proceeds allocated, the share of financing versus refinancing and the balance of unallocated proceeds, if any. Sustainalytics views HMGMA’s allocation and impact reporting as aligned with market practice.