Second-Party Opinion Download

Sustainalytics is of the opinion that the Kvika Green Funding Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following: 

USE OF PROCEEDS

The eligible categories for the use of proceeds – Clean Transportation, Green Buildings, Renewable Energy, Circular Economy Adapted Products, Production Technologies and Processes, and Biodiversity Conservation – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7, 9, 11, 12 and 15.  

PROJECT EVALUATION AND SELECTION

Kvika’s Sustainability Committee is responsible for evaluating and selecting eligible projects in line with the Framework’s eligibility criteria. The Sustainability Committee will validate the portfolio of eligible assets at least on a semi-annual basis, and may delegate authority to the Credit Committee or dedicated specialists for the review of selected assets and projects. Kvika has a process in place to mitigate environmental and social risks associated with eligible assets and projects. Based on the presence of a dedicated committee and risk management systems, Sustainalytics considers this process to be in line with market practice.  

MANAGEMENT OF PROCEEDS

Kvika’s Treasury Department will be responsible for managing proceeds using a portfolio approach. Kvika’s risk Management Department will be responsible for tracking the proceeds using a Green Register. The Bank intends to fully allocate netproceeds within 18 months of issuance. Pending allocation, proceeds will be temporarily held in accordance with Kvika’s liquidity management policy in a portfolio of cash, cash equivalents or other liquid market instruments. Sustainalytics considers this to be in line with market practice. 

REPORTING

Kvika commits to report on allocation of proceeds and corresponding impact in an allocation and impact report on an annual basis until full allocation of bond proceeds. The allocation and impact report will be publicly available on the Bank’s website. Allocation reporting will include the total amount of green bonds issued, a breakdown of eligible assets and projects per use of proceeds category, the distribution between refinancing and new financing, and the share of unallocated proceeds. Impact reporting will include annual GHG emissions avoided or reduced (in tCO2e), installed capacity of renewable energy (in MW), the material recovery rate of circular economy-adapted solutions, amongst others. Sustainalytics considers this to be in line with market practice.