Project Details
Project
National Rural Utilities Cooperative Finance Corporation Sustainability Bond Framework Second-Party Opinion
Client
National Rural Utilities Cooperative Finance Corporation
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Sep 2020
Evaluation Summary
Sustainalytics is of the opinion that the 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 eligible categories for the use of proceeds, Access to Essential Services and Renewable Energy, are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 7 and 9.
PROJECT EVALUATION/SELECTION
National Rural Utilities Cooperative Finance Corporation will rely on inputs from its business units as well as its Treasury Team for project evaluation with the CFO responsible for final selection. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
CFC’s Treasury Team will oversee managing net proceeds from issuance. Pending allocation, CFC intends on investing proceeds in liquid securities or paying down short-term indebtedness. This is in line with market practice.
REPORTING
National Rural Utilities Cooperative Finance Corporation intends to report allocation proceeds on its website on an annual basis until full allocation. In addition, National Rural Utilities Cooperative Finance Corporation is committed to reporting on relevant impact metrics. Sustainalytics views National Rural Utilities Cooperative Finance Corporation’s allocation and impact reporting as aligned with market practice.