Second-Party Opinion Download

Sustainalytics is of the opinion that the Proactive Realty Income Fund II, LLC Sustainable Finance Framework is credible, impactful and aligned with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021 and Social Bond Principles 2023. This assessment is based on the following: 

USE OF PROCEEDS

The eligible categories for the use of proceeds – Affordable Housing, Access to Financing, Sustainable Water and Management, Renewable Energy and Energy Efficiency – are aligned with those recognized by the Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive social impacts and advance the UN Sustainable Development Goals, specifically SDGs 6, 7 and 11. 

PROJECT EVALUATION AND SELECTION

Proactive Realty Income Fund II, LLC has a Sustainable Finance Committee that consists of the Managing Founder, Managing Director and Director of Operations, which will be responsible for the selection of projects in accordance with the eligibility criteria of the Framework. Proactive Realty Income Fund II, LLC has internal processes to address environmental and social risks commonly associated with the financed projects. Sustainalytics considers the risk management system to be adequate and the project selection process to be in line with market practice. 

MANAGEMENT OF PROCEEDS

Proactive Realty Income Fund II, LLC’s Sustainable Finance Committee will be responsible for the management and allocation of proceeds. Proactive Realty Income Fund II, LLC intends to allocate proceeds within 12 months of each issuance. Pending full allocation, unallocated proceeds will be used for the payment of outstanding debt or held temporarily in cash, cash equivalents or other liquid marketable instruments. Debt refinancing will exclude any debt associated with carbon-intensive assets or activities. This is in line with market practice.

REPORTING

Proactive Realty Income Fund II, LLC will report on allocation and impact of the proceeds on its website on an annual basis until full allocation. The impact report will include relevant impact metrics such as number of units purchased or developed for affordable housing and number of office buildings retrofitted for LED lighting. Sustainalytics views the allocation and impact reporting commitments as aligned with market practice.