Project Details
Project
KOGAS Sustainable Financing Framework Second-Party Opinion
Client
Korea Gas Corporation
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
South Korea
Evaluation Date
Nov 2018
Evaluation Summary
Sustainalytics is of the opinion that the KOGAS Sustainability Bond Framework is credible and impactful, and aligns with the Sustainability Bond Guidelines 2018. This assessment is based on the following:
USE OF PROCEEDS
The five eligible categories for the use of proceeds are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers green projects in the areas of renewable energy, low carbon transport, green buildings, and social projects related to job creation in local SMEs and support for underprivileged target groups to have positive environmental or social impacts and to advance the UN Sustainable Development Goals.
PROJECT EVALUATION/SELECTION
KOGAS has established a dedicated Sustainability Bond Working Group (“SBWG”) to oversee the project selection process and review all funded projects annually to ensure ongoing compliance with the criteria of the Framework. This is in line with market practice.
MANAGEMENT OF PROCEEDS
The net proceeds of the sustainability bonds will be deposited to KOGAS’ Treasury Portfolio, and the Treasury team will track the proceeds using its internal accounting system. Pending full allocation, proceeds may be used to re-pay outstanding indebtedness or be temporarily invested in various instruments. This is in line with market practice.
REPORTING
KOGAS has committed to providing impact reporting, including relevant key performance indicators, and allocation reporting, including a breakdown of allocated funds at the category level, the balance of unallocated proceeds, the portions of financing and refinancing, and a description of sample projects, available on its website on an annual basis until full allocation. This is in line with market practice.