Project Details
Project
Jordan Kuwait Bank Green Finance Framework Second-Party Opinion (2023)
Client
Jordan Kuwait Bank
Project Type
Green Bond/Loan
Industry Group
Banks
Use of Proceeds
Green buildings; Renewable energy; Energy efficiency; Clean transport; Water/waste water management;
Location
Jordan
Evaluation Date
Apr 2023
Evaluation Summary
USE OF PROCEEDS
The eligible categories for the use of proceeds – Green Buildings, Renewable Energy, Energy Efficiency, Clean Transportation and Sustainable Water and Wastewater Management – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories are expected to generate positive environmental and social impacts and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 9 and 11.
PROJECT SELECTION AND EVALUATION
Jordan Kuwait Bank’s Sustainable Development Committee will be responsible for evaluating and selecting eligible projects. The committee comprises representatives from the Treasury, Corporate Business Development, Risk and Sustainability departments. Jordan Kuwait Bank has in place an internal environmental and social risk management system to assess and manage risks associated with eligible projects. Sustainalytics considers the risk management systems in place to be adequate and the project evaluation and selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Jordan Kuwait Bank’s Sustainable Development Committee will be responsible for the management of proceeds and will track the proceeds using an internal tracking system. Jordan Kuwait Bank intends to achieve a full allocation of net proceeds within 36 months of issuance and will use a portfolio approach for the management of proceeds. Jordan Kuwait Bank will temporarily hold unallocated proceeds in cash and short-term liquid instruments in accordance with its treasury management policy. Sustainalytics considers this to be in line with market practice.
REPORTING
Jordan Kuwait Bank intends to report on the allocation of proceeds and corresponding impact through a separate allocation and impact report, which will be published on its website on an annual basis until full allocation. Allocation reporting will include the amount of proceeds allocated to each category and the balance of unallocated proceeds. Sustainalytics views Jordan Kuwait Bank’s allocation and impact reporting commitments as aligned with market practice.