Project Details
Project
MCB Group Sustainable Finance Framework Second Party Opinion (2024)
Client
Mauritius Commercial Bank Group
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Renewable energy; Energy efficiency; Green buildings; Clean transport; Water/waste water management; Pollution prevention and control; Climate change adaptation; Employment generation and Socio-economic empowerment; Access to essential services; Affordable housing; Affordable basic infrastructure; Food security; Conservation;
Location
Mauritius
Evaluation Date
Oct 2024
Evaluation Summary
Sustainalytics is of the opinion that the MCB Group Sustainable Finance Framework
is credible and impactful and aligns with the Sustainability Bond Guidelines 2021,
Green Bond Principles 2021, Social Bond Principles 2023, Green Loan Principles 2023
and Social Loan Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds1
are aligned with those recognized by the Sustainability Bond
Guidelines , Green Bond Principles, Social Bond Principles, Green Loan
Principles and Social Loan Principles. Sustainalytics considers that
investments in the eligible categories will lead to positive
environmental or social impacts and advance the UN Sustainable
Development Goals, specifically SDGs 2, 3, 4, 5, 6, 7, 8, 9, 11, 12 and
13.
PROJECT EVALUATION AND SELECTION
Mauritius Commercial
Bank Group’s Corporate Sustainability Committee and Sustainability
Strategic Council, through its Transition Taskforce, are responsible for
the evaluation and selection of eligible projects. The Environmental
and Social Risk Management team is responsible for assessing the
environmental and social risks of potential green and social projects.
Sustainalytics considers the above to be in line with market practice.
MANAGEMENT OF PROCEEDS
Mauritius Commercial Bank Group’s
Financial Institutions & Syndication (Funding desk) is responsible for
the management and allocation of proceeds to the eligible assets
using a portfolio approach. Mauritius Commercial Bank Group will
allocate the proceeds fully within 24 months of issuance. Unallocated
proceeds will be held temporarily in short-term marketable
instruments, cash or cash equivalents, money market instruments or
other liquid financing instruments. This is in line with market practice.
REPORTING
Mauritius Commercial Bank Group will publish an annual
report on the allocation of proceeds on a portfolio basis until full
allocation. Allocation reporting will include information such as the
total amount of proceeds allocated to eligible projects and relevant
categories, as well as the balance of unallocated net proceeds and
where these have been invested. Mauritius Commercial Bank Group
also commits to report on relevant impact metrics. This is in line with
market practice.