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Second-Party Opinion Download

Project Details

Project

J.P. Morgan Chase Commercial Mortgage Securities Trust 2021-NYAH MZ Second-Party Opinion (2021)

Client

JPMorgan Chase & Company

Project Type

Social Bond/Loan

Industry Group

Diversified Financials

Use of Proceeds

Affordable housing

Location

U.S.

Evaluation Date

Oct 2021

Evaluation Summary

Sustainalytics is of the opinion that the Social Bond Framework (as defined below) within the J.P. Morgan Chase Commercial Mortgage Securities Trust 2021-NYAH MZ offering document is credible and impactful and aligns with the four core components of the Social Bond Principles 2021. This assessment is based on the following: 

USE OF PROCEEDS

The eligible category for the use of proceeds, Affordable Housing, is aligned with those recognized by the Social Bond Principles, which seek to achieve positive socio-economic outcomes for target populations. Sustainalytics considers that the Issuer’s financing of affordable housing assets will lead to positive social impacts and advance the UN Sustainable Development Goals, specifically SDG 11. 

PROJECT EVALUATION / SELECTION

Different groups within JPMorgan Chase & Co., a parent of JPMorgan Chase Bank, National Association, were responsible for evaluating the eligible properties. JPMorgan Chase & Co. has a dedicated environmental and social risk assessment and mitigation process that is applicable to all allocation decisions made under the Framework. Based on the exclusive use of proceeds to purchase an asset that refinanced pre-identified eligible properties, Sustainalytics considers this process to be aligned with market practice. 

MANAGEMENT OF PROCEEDS

J.P. Morgan Chase Commercial Mortgage Securities Corp, a wholly owned subsidiary of JPMorgan Chase & Co., will be responsible for immediately allocating the full bond proceeds to acquire the mezzanine loan from JPMorgan Chase Bank, National Association with no flexibility to reallocate. This is in line with market practice. 

REPORTING

J.P. Morgan Chase Commercial Mortgage Securities Corp. commits to publishing an upfront report for the issuance with information on the specific eligible properties financed through the mezzanine loan, including the description of the eligible properties and the number of rent-stabilized and rent-controlled units, along with key sustainability metrics, such as the number of units affordable to tenants at different area median income thresholds. Sustainalytics views JPMorgan Chase & Co.’s allocation and impact reporting as aligned with market practice. 

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