Second-Party Opinion Download

Sustainalytics is of the opinion that KEXIM Social Bond Framework on the COVID-19 Response is credible and impactful and aligns with the four core components of the Social Bond Principles 2020 (“SBP”). This assessment is based on the following:

USE OF PROCEEDS

The eligible category for the use of proceeds – Employment Generation and Socioeconomic Empowerment via SME Financing – is aligned with those recognized by the SBP that seek to achieve positive socio-economic outcomes for target populations. Sustainalytics considers that the eligible category will help ensuring business and employment continuity during natural disasters and pandemics, including COVID-19, in South Korea while advancing the UN Sustainable Development Goals (SDGs), specifically SDG 8.

PROJECT EVALUATION/SELECTION

KEXIM’s internal process in evaluating and selecting projects is managed by the Treasury Group, supported by Credit Policy Department. Sustainalytics considers the project selection process in line with market practice.

MANAGEMENT OF PROCEEDS

KEXIM’s processes for management of proceeds are handled by the Treasury Group. KEXIM will use an internal register to track the proceeds. Pending allocation, proceeds will be held in cash and cash equivalents in accordance with KEXIM existing liquidity management process. This is in line with market practice.

REPORTING

KEXIM intends to report allocation proceeds on its website on an annual basis until full allocation. Allocation reporting may include a description of the projects, amount of the proceeds allocated, number of loans or projects supported by the proceeds, the remaining balance of unallocated proceeds, and KEXIM’s intention regarding future allocation. In addition, KEXIM is committed to reporting on relevant impact metrics. Sustainalytics views KEXIM’s allocation and impact reporting as aligned with market practice.