Monarch Social Bond Framework Second-Party Opinion (2021)
Monarch Private Capital
USE OF PROCEEDS
The eligible category for the use of proceeds, Affordable Housing, is aligned with those recognized by the Social Bond Principles 2021. Sustainalytics considers that the eligible category will lead to positive social impacts and advance the UN Sustainable Development Goals, specifically SDGs 10 and 11.
PROJECT EVALUATION / SELECTION
Monarch has established a Social Bond Committee, chaired by Monarch’s Chief Financial Officer and comprised of senior representatives from Monarch’s executive, investments and asset management functions, to oversee the evaluation and selection process. The Committee will be responsible for assessing ongoing compliance with the outlined criteria. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Monarch’s Accounting Department will establish a social bond register to track the allocation of the net proceeds of each issuance to eligible projects. Pending full allocation, Monarch will invest unallocated proceeds in accordance with its cash investment policy. This is in line with market practice.
Monarch intends to provide allocation and impact reporting on its website on an annual basis, until full allocation. Allocation reporting will include details on funded projects and the total amount of proceeds allocated. Impact reporting will draw on relevant metrics, where feasible, including number of affordable units produced and local income generated. Sustainalytics views Monarch’s allocation and impact reporting as aligned with market practice.