Project Details
Project
Obvion N.V. Green STORM 2019 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
Jun 2019
Evaluation Summary
Sustainalytics is of the opinion that the Green STORM 2019 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 is aligned with those recognized by the Green Bond Principles. Sustainalytics considers that mortgage loans for energy efficient buildings will lead to positive environmental impacts and advance the
UN Sustainable Development Goals, in particular Goals 7 and 11.
PROJECT EVALUATION AND SELECTION
A dedicated internal team consisting of representatives from the Funding & Portfolio Management team of Obvion, and the Securitisation & Covered Bonds team and Sustainability Capital Markets teams of Rabobank will select the eligible mortgages, using data provided by real estate data provider Calcasa. This is in line with market practice.
MANAGEMENT OF PROCEEDS
Obvion will allocate the full amount of net proceeds of the RMBS transaction to refinance eligible assets at the time of closing of the issuance. A third-party will verify that the included loans are eligible on an ongoing basis. Obvion commits to purchasing back any loans which are no longer compliant and substituting any ineligible mortgages. This is in line with market practice.
REPORTING
Obvion intends to report on the allocation of proceeds in a monthly report to investors. In addition, a third party has been selected to perform an assessment of quantitative impacts, based on the actual energy use of households within the portfolio. This assessment will be made available to investors at the time of issuance. This is in line with market practice.