Second-Party Opinion Download

Sustainalytics is of the opinion that the Paracel Sustainability Financing Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, Green Loan Principles 2021 and the Social Loan Principles 2021. This assessment is based on the following:   

USE OF PROCEEDS

The eligible categories for the use of proceeds – Renewable Energy, Sustainable Water and Wastewater Management, Pollution Prevention and Control, Environmentally Sustainable Management of Living Natural Resources and Land Use and Socio-economic Advancement and Empowerment – are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles and the Social Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental and social impacts and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 8, 12 and 15. 

PROJECT EVALUATION AND SELECTION

Paracel will establish a Sustainability Financing Working Group (the “Working Group”), which will comprise members from the Finance, Environment & Licensing, Social and Communications and Project Management (including procurement) teams. The Working Group will be responsible for the project selection and evaluation process. Paracel has adopted risk-mitigating measures to identify and manage environmental and social risks associated with the financed assets. Sustainalytics considers the environmental and social risk management systems to be adequate and the project and the selection process to be in line with market practice. 

MANAGEMENT OF PROCEEDS

Paracel’s Working Group is responsible for overseeing the allocation of proceeds, and the Finance team will be responsible for tracking and managing the proceeds. Paracel intends to fully allocate the green or sustainable project finance loans within 12 months after the last drawdown of such loan and allocate the green or sustainable bond proceeds within 36 months of issuance. This is in line with market practice. 

REPORTING

Paracel intends to report on the allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting will include the net proceeds raised, the amount of net proceeds allocated to eligible categories, the unallocated balance of proceeds, the proportion of proceeds financed and refinanced and brief project descriptions. In addition, Paracel is committed to reporting on relevant impact metrics. Sustainalytics views Paracel’s allocation and impact reporting as aligned with market practice.