Second-Party Opinion Download

Sustainalytics is of the opinion that the Maynilad Water Services, Inc. Sustainable Finance Framework is credible, impactful and aligned with the Green Bond Principles 2021, Social Bond Principles 2023, Green Loan Principles 2023, Social Loan Principles 2023, ASEAN Sustainability Bond Standards 2018, ASEAN Green Bond Standards 2018 and ASEAN Social Bond Standards 2018. This assessment is based on the following: 

USE OF PROCEEDS :
The eligible categories for the use of proceeds — Sustainable Water and Wastewater Management, Sustainable Management of Living Natural Resources, Energy Efficiency, Renewable Energy, Climate Change Adaptation, and Affordable Basic Infrastructure — are aligned with those recognized by the 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 6, 7, 12, 13, and 15.

PROJECT EVALUATION AND SELECTION:
Maynilad’s Chief Financial Officer and the Chief Sustainability Officer are responsible for the identification, evaluation and selection of projects in line with the Framework’s eligibility criteria. Maynilad has procedures in place to identify and manage environmental and social risks that apply to all allocation decisions made under the Framework. Sustainalytics considers Maynilad’s risk management systems to be adequate and the project evaluation and selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS:
Maynilad’s Finance Division will be responsible for the management and allocation of proceeds to eligible projects. Maynilad will track and report the allocation of proceeds through its internal tracking system, using a register of eligible assets, and intends to allocate proceeds within 36 months of issuance. Pending full allocation, Maynilad will hold an amount equivalent to the unallocated proceeds in cash or cash equivalents, or use for debt repayment, in accordance with its internal liquidity management policies and strategies. This is in line with market practice.

REPORTING:
Maynilad will report on allocation of proceeds in the Company’s Sustainability Report or on its website on an annual basis until full allocation. In addition, Maynilad intends to report on the environmental and social impacts of the use of proceeds using relevant impact metrics, wherever feasible. Sustainalytics considers the allocation and impact reporting commitments to be aligned with market practice.