Project Details
Project
Obvion N.V. Green STORM 2023 Green Bond Framework Second Party Opinion
Client
Obvion N.V.
Project Type
Green Bond/Loan
Industry Group
Diversified Financials
Use of Proceeds
Green buildings
Location
Netherlands
Evaluation Date
Feb 2023
Evaluation Summary
Sustainalytics is of the opinion that the Green STORM 2023 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 – Green Buildings – is aligned with those recognized by the Green Bond Principles 2021. Sustainalytics considers that investments in the eligible category are expected to improve the energy performance of the Dutch building stock and advance the UN Sustainable Development Goals, specifically SDGs 7 and 11.
PROJECT EVALUATION AND SELECTION
Obvion’s Green STORM project team, consisting of representatives from its Funding & Portfolio Management team, Rabobank’s Securitisation & Covered Bonds team and Rabobank’s Sustainable Capital Markets team, oversees the internal process for evaluating and selecting projects. Obvion ’s environmental and social risk management processes are applicable to all allocation decisions made under the Framework. Sustainalytics considers these risk management systems to be adequate and the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
At the time of issuance, net proceeds from the mortgage-backed notes will be allocated in full to finance or refinance eligible loans. Obvion will verify the eligibility of the selected loans on a monthly basis. Obvion will replace any loan that ceases to comply with the eligibility criteria with an eligible asset. This is in line with market practice.
REPORTING
Obvion will publish a monthly report providing loan-level data to investors on the mortgages included in the transaction pool. In addition, Obvion will publish information on energy performance certificates of the mortgage assets on a quarterly basis. A third party has been appointed to calculate the impact in the form of CO2 reductions achieved based on real energy consumption, which will be made available to investors at the time of issuance. Sustainalytics views Obvion’s allocation and impact reporting as aligned with market practice.