Second-Party Opinion Download

Sustainalytics is of the opinion that Mega's Sustainable Bond Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Employment Generation, Socio-Economic Advancement and Empowerment, Environmentally Sustainable Management of Living Natural Resources and Land Use, Sustainable Water and Wastewater Management, Renewable Energy, Pollution Prevention and Control – are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 2, 5, 6, 7, 8, 12.

PROJECT EVALUATION/SELECTION

Mega's Environmental and Social Committee, comprised of members from the management team and multiple departments, will be responsible for project evaluation and selection. Sustainalytics considers the project selection process in line with market practice.

MANAGEMENT OF PROCEEDS

Mega will establish a sustainable bond register, managed by the Environmental and Social Committee, through which it will track net bond proceeds. Pending allocation proceeds will be kept in cash, cash equivalents, and or in accordance with Mega's liquidity policies. This is in line with market practice.

REPORTING

Mega intends to publish reports on its website within a year of each green, social and/or sustainability issuance and until full allocation. The reports will contain (i) a summary of each outstanding bond; (ii) assignment of proceeds to each eligible category and, where possible, information on the project portfolio; (iii) amount used for financing or refinancing; (iv) balance of unallocated proceeds; and (v) relevant expected environmental or social impacts per eligible category. Sustainalytics views Mega's allocation and impact reporting as aligned with market practice.