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Second-Party Opinion Download

Project Details


NMB Bank PLC Social Bond Framework Second Party Opinion (2022)



Project Type

Social Bond/Loan

Industry Group


Use of Proceeds

Access to essential services; Employment generation; Socio-economic advancement; Food security;



Evaluation Date

Jan 2022

Evaluation Summary

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


The eligible categories for the use of proceeds – Access to Essential Services, Employment Generation, Socio-Economic Empowerment - Gender inclusion and Food Security and Sustainable Food Systems – are aligned with those recognized by the Social Bond Principles 2021 that seek to achieve positive socio-economic outcomes for target populations. Sustainalytics considers that investments in the eligible categories will lead to positive social impacts and advance the UN Sustainable Development Goals, specifically SDGs 2, 3, 5, 8, 9, 10.  


NMB Bank PLC’s business lines are responsible for selecting eligible projects and assets in line with the Framework's eligibility criteria and in compliance with local laws and regulatory social requirements. After selection, Credit Appraisal is submitted to relevant committees for approval. For refinancing projects, suballocation of funds will be done by the Treasury team from the available bond proceeds. NMB Bank PLC’s environmental and social risk management policy and tools apply to all allocation decisions made under the Framework, which Sustainalytics views as adequate. Sustainalytics considers the project evaluation and selection process to be in line with market practice. 


NMB Bank PLC utilizes an internal tracking system to monitor financed eligible projects under the Framework. The Credit Administration department monitors the allocation of bond proceeds and reports to the Treasury department, which is overseen by the Executive Committee. The Credit Monitoring and Evaluation team conducts periodic peer reviews to ensure the allocated bond funds continue to finance projects that align with the Framework's eligibility criteria. NMB Bank PLC intends to allocate all proceeds within 18 months of issuance. Pending allocation, proceeds will be temporarily invested in line with the Bank’s liquidity asset management investment policy. This is aligned with market practice. 


NMB Bank PLC intends to report quarterly on the allocation of proceeds in a social bond report, as well as annually on corresponding impact metrics in an impact report, until full allocation. The reports will be published on the Bank’s website. Sustainalytics views NMB Bank PLC’s allocation and impact reporting as aligned with market practice.