Second-Party Opinion Download

USE OF PROCEEDS

The eligible category for the use of proceeds, Green Buildings, is aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7, 9 and 11.

PROJECT EVALUATION AND SELECTION

MBH Mortgage Bank’s Green Covered Bond Committee will oversee the internal process for evaluating and selecting projects, including reviewing, assessing and selecting all projects in accordance with the Framework’s eligibility criteria. MBH Mortgage Bank has internal procedures in place to identify and manage environmental and social risks associated with the assets financed, which apply to all allocation decisions made under the Framework. Sustainalytics considers MBH Mortgage Bank’s risk management systems to be adequate and the project evaluation and selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

The Green Covered Bond Committee will also oversee the management of proceeds and will track allocation to eligible assets using existing internal tracking systems through a portfolio approach. MBH Mortgage Bank intends to allocate proceeds within 24 months of issuance. Pending full allocation, unallocated proceeds will be temporarily held in MBH Mortgage Bank’s liquid asset portfolio. This is in line with market practice.

REPORTING

MBH Mortgage Bank intends to report on allocation of proceeds on its website on a quarterly basis until full allocation. The report will include the size of the identified eligible green loans portfolio, the total amount allocated to eligible green loans, the balance of unallocated proceeds, and the share of financing versus refinancing. In addition, MBH Mortgage Bank is committed to reporting on relevant impact metrics. Sustainalytics views MBH MB’s allocation and impact reporting commitments as aligned with market practice.