Project Details
Project
Obvion N.V. Green STORM 2018 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
May 2018
Evaluation Summary
Sustainalytics is of the opinion that Green STORM 2018 is credible and impactful, and aligns with the four core components of the Green Bond Principles 2017. This assessment is based on the following:
USE OF PROCEEDS
The eligible use of proceeds category, Green Buildings, is recognized by the Green Bond Principles as a project category having positive environmental benefits. Additionally, green residential mortgage-backed securities are aligned within the four recognized types of green bonds described in the Green Bond Principles 2017. Sustainalytics is of the opinion that Obvion’s mortgages backed by green buildings lead to positive environmental impact in the Dutch residential sector.
PROJECT EVALUATION AND SELECTION
Obvion’s project evaluation and selection process is executed through a working group including Obvion’s members of its Funding & Risk Management team, and Rabobank’s Debt Capital Markets (Securitization & Covered Bonds and Sustainable Markets teams). The working group will select mortgages for the inclusion in the Green STORM 2018 based on the defined eligibility criteria presented below (3.1 Use of Proceeds). Sustainalytics assesses this approach to be in line with market practices.
MANAGEMENT OF PROCEEDS
Obvion’s management of proceeds is aligned with market practices and includes a direct and full allocation of the green bond proceeds to fund eligible mortgages in the portfolio, leaving no balance of funds to be invested. In case any loan fails to comply with the eligibility criteria, it will be purchased back by the seller (Obvion) and substituted by another loan that complies with the criteria.
REPORTING
Obvion commits to provide (i) an annual allocation report comprising the composition of the mortgages in terms of the eligibility criteria, which will be made available on Bloomberg as well as on the website of the Dutch Securitization Association, and (ii) with regards to impact reporting, Obvion will provide a third-party CO2 calculation study to demonstrate the climate impact of Green STORM 2018, which will be included in the investor package. Sustainalytics is of the opinion that Obvion’s approach to allocation and impact reporting is in line with current market best practices.