Second-Party Opinion Download

Sustainalytics is of the opinion that the Sustainability Bond Framework for Millicom International Cellular S.A (Millicom 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 three eligible categories (Energy Efficiency; Increased Access to Information; and Communication Technology and Social Programs Facilitating Socioeconomic Advancement and Empowerment) for the use of proceeds are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers the use of proceeds categories to have positive environmental or social impacts and to advance the UN Sustainable Development Goals, lowering the GHG emissions from the company’s operations, introducing internet to unconnected and underserved groups and promoting socioeconomic advancements and training to underserved populations.

PROJECT EVALUATION/SELECTION

Millicom has set up an internal Sustainability Bond Committee, formed out of cross-departmental representatives, that is responsible for evaluating and selecting eligible assets and projects for Sustainability Bond funding in accordance with the Millicom Sustainability Bond Framework. The committee will also ensure that investments are in line with internal sustainability policies and guidelines and has a veto in the decision-making process. This system process is aligned with market practice.

MANAGEMENT OF PROCEEDS

The use of proceeds from issued bonds will be earmarked for financing and refinancing of projects that meet the criteria set out in the Millicom Sustainability Bond Framework. The unallocated net proceeds from the Sustainability Bonds will be deposited in specific bank accounts and invested according to the liquidity management policy of Millicom. The company’s process for the management of proceeds is in accordance with market practice.

REPORTING

In line with market practice, Millicom commits to providing an annual investor letter which will include an allocation report and an impact report. The allocation report will contain information regarding the eligible projects, the amount of allocated and unallocated proceeds, and examples of financed assets or projects. The impact report will include relevant KPIs for each use of proceeds category.