Second-Party Opinion Download

Sustainalytics is of the opinion that the KBC Social Bond Framework 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 categories for the use of proceeds – Access to Education, Affordable Basic Infrastructure for Sport and Culture, Hospitals, Care Facilities, Social Housing and SME Loans – are aligned with those recognized by the Social Bond Principles 2021. Sustainalytics expects investments in the eligible categories to lead to a positive social impact in Belgium and advance the UN Sustainable Development Goals, specifically SDGs 3, 4, 8, 9, 10 and 11.

PROJECT EVALUATION / SELECTION

KBC has established a Green and Social Bond Committee (the “Committee”), comprised of representatives from Treasury, Corporate Sustainability and business units where required. Different business units will be responsible for evaluating and selecting projects, and submitting them to the Committee for approval. KBC has in place environmental and social risk management and mitigation processes which are applicable to all allocation decisions. Sustainalytics considers these risk management systems to be adequate and the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

KBC’s Treasury team will track the allocation of proceeds on a portfolio basis through an internal information system. KBC intends to allocate all proceeds at issuance. However, if there are any unallocated proceeds, such proceeds will be held in cash, cash equivalents or invested in money market products. This is in line with market practice.

REPORTING

KBC intends to report on the allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting will include the total amount of proceeds allocated to eligible assets, the allocated amounts per use of proceeds category, the origination timeframe and maturity profile of loans per category, and the amount of unallocated proceeds, if any. In addition, KBC is committed to reporting on relevant impact metrics. Sustainalytics views KBC’s allocation and impact reporting commitments as aligned with market practice.