Japan Bank for International Cooperation Green Bond Second-Party Opinion
Japan Bank for International Cooperation
Use of Proceeds
Green buildings; Clean transport; Renewable energy;
Sustainalytics is of the opinion that the Japan Bank for International Cooperation Green Bond Framework is credible and impactful and aligns to the four core components of the Green Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Renewable Energy/Clean Energy, Clean Transportation, Green Buildings – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7, 9 and 11.
PROJECT EVALUATION / SELECTION
Eligible projects will be selected and evaluated by the Treasury Department based on the eligibility criteria and in consultation with the Corporate Planning Department. Japan Bank for International Cooperation has in place a process to prospectively evaluate and monitor environmental and social risks, and this process will be applied to all projects under the Framework. Sustainalytics considers this risk management system to be adequate and that the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
The Treasury Department will track and manage the allocation of proceeds once a year using an internal system. Japan Bank for International Cooperation intends to complete the allocation of proceeds within 36 months after the issuance of the green bond. Pending allocation, unallocated proceeds will be held in cash or cash equivalents. Japan Bank for International Cooperation’s processes for management of proceeds are in line with market practice.
Until full allocation of the proceeds, Japan Bank for International Corporation intends to report on the proceeds’ allocation status and positive environmental impacts on its website at least once a year. Allocation reporting will include the amount of allocated and unallocated proceeds. As for positive environmental impacts, impact reporting will provide quantitative and qualitative indicators according to eligible categories to the extent practicable. Sustainalytics views Japan Bank for International Cooperation’s allocation and impact reporting as aligned with market practice.