Second-Party Opinion Download

Sustainalytics is of the opinion that the Nykredit Green Bond Framework is credible and impactful, and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible category for the use of proceeds – green mortgages on energy efficient buildings – is aligned with those recognized by the Green Bond Principles. Sustainalytics considers that the eligible green mortgages will lead to positive environmental impacts and advance the UN Sustainable Development Goals, in particular Goal 11 – Sustainable Cities and Communities.

PROJECT EVALUATION/SELECTION

Aligned with market practice, Nykredit has established a dedicated Green Bond Committee, consisting of representatives from departments including Capital & Funding, Group Finance & Investments, Regulation and External Relations & Responsibility, as well as the relevant member of the executive board. The Committee will review mortgages to ensure they qualify as eligible assets, on at least a quarterly basis.

MANAGEMENT OF PROCEEDS

Nykredit’s Capital & Funding department will be charged with maintaining a registry of eligible assets, and matching the cash flow of the green bonds with those of the funded mortgages. Based on the use of a formal registry, as well as the disclosure of how unallocated funds will be managed, Sustainalytics considers this process to be in line with market practice.

REPORTING

Nykredit has committed to reporting on both allocation and impact on an annual basis for the life of the green bonds, to be made available on the issuer’s website. Based on the commitment to annual reporting, including quantitative performance metrics, Sustainalytics considers this process to be in line with market practice.