Project Details
Project
PKO Bank Hipoteczny SA Green Covered Bond Second-Party Opinion
Client
PKO Bank Hipoteczny SA
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Poland
Evaluation Date
May 2019
Evaluation Summary
Sustainalytics is of the opinion that the PKO Bank Hipoteczny SA Green Covered Bond 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 recognized by the Green Bond Principles. Sustainalytics considers that the green buildings category will lead to positive environmental impacts such as mitigating GHG emissions.
PROJECT EVALUATION/SELECTION
PKO Bank Hipoteczny SA has established a dedicated Green Covered Bond Committee, comprised of representatives from the treasury, the residential mortgage loans office, risk office, the compliance office, the controlling office and the cover pool register office. The Green Covered Bond Committee will oversee the entire Green Covered Bond process, including the evaluation and selection of eligible loans, and will meet regularly (at least once annually) in order to conduct an additional analysis on the selected mortgages to ensure continuous compliance with the eligibility criteria. The committee reports directly to PKOs Management Board. This process is in line with market practice.
MANAGEMENT OF PROCEEDS
PKO Bank Hipoteczny SA will assign the net proceeds from the issuance of green covered bonds to a portfolio of loans that meets the use of proceeds eligibility criteria, and intends to allocate all proceeds within 24 months of issuance. PKO Bank Hipoteczny SA will hold or invest any unallocated green covered bonds net proceeds in its liquidity portfolio in financial market instruments, in alignment with the Polish Act of 29 August 1997 on Covered Bonds and Mortgage Banks. This process is in line with market practice.
REPORTING
PKO Bank Hipoteczny SA commits to disclosing allocation and impact reports on a yearly basis on its website. The allocation report will provide the total amount of proceeds allocated to eligible loans, number of eligible loans, balance of unallocated proceeds, while the impact report will give information on relevant quantifiable metrics.