Second-Party Opinion Download

Sustainalytics is of the opinion that the NIBC Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following:

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 and 11.

PROJECT EVALUATION AND SELECTION

NIBC’s Green Bond Working Group is responsible for evaluating and selecting projects in line with the Framework’s eligibility criteria. NIBC has an internal due diligence process to identify and mitigate environmental and social risks associated with the eligible assets. The Sustainability department will oversee this process. Sustainalytics considers the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

NIBC’s Treasury department will manage the proceeds using a portfolio approach and will track their allocation using an internal tracking system. The Bank intends to fully allocate the net proceeds within 24 months of each issuance. Pending allocation, proceeds will be temporarily held in cash or invested in liquid instruments. This is in line with market practice.

REPORTING

NIBC will report on the allocation of proceeds and the corresponding impact on its website on an annual basis for as long as there are bonds outstanding. Allocation reporting will include the total amount of green bonds outstanding, the total amount of green bond proceeds allocated, an overview of the geographical distribution of allocated assets, the balance of unallocated proceeds, if any, and the share of new financing versus refinancing. Sustainalytics views NIBC’s allocation and impact reporting as aligned with market practice.