Project Details
Project
MORhomes Social Bond Framework Second-Party Opinion
Client
MORhomes
Project Type
Social Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.K.
Evaluation Date
Sep 2018
Evaluation Summary
Sustainalytics is of the opinion that the MORhomes Social Bond Framework is credible and impactful and aligns with the four core components of the Social Bond Principles 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds – affordable housing – is aligned with those recognized by the Social Bond Principles that seek to achieve positive socio-economic outcomes for target populations. Sustainalytics considers that the affordable housing projects will positively contribute to improve the availability and quality of affordable housing in the United Kingdom, in line with the UK Government’s commitments. Similarly, Sustainalytics views that the MORhomes Social Bond Framework will advance the UN Sustainable Development Goal 11 and 8.
PROJECT EVALUATION/SELECTION
The social bond proceeds will be disbursed by MORhomes’ shareholders, each of whom are not-forprofit, registered housing associations providing social and affordable housing, in line with UK statutory requirements, to their social and affordable housing projects. Sustainalytics considers this process, although not a formalized selection process per se, to be in line with market practices due to the nature of UK’s well-regulated social housing environment.
MANAGEMENT OF PROCEEDS
MORhomes social bond proceeds will be immediately disbursed at the time of issuance to a series of loans arranged in connection with the shareholder housing association’s affordable housing projects. Sustainalytics views this process as aligned with market practices.
REPORTING
MORhomes commits to publish an annual integrated allocation and impact report on the company website. With regards to the allocation report, it will comprise a complete list of projects financed and example case studies, where available, and management assertions on the social bond allocations. MORhomes’ impact report will incorporate data on the number of housing units constructed or refurbished, based on available data. Sustainalytics views MORhomes’ reporting commitments as aligned with market practices.