Second-Party Opinion Download

Sustainalytics is of the opinion that the ProCredit Group Green 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 categories for the use of proceeds are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that the (i) energy efficiency, (ii) renewable energy, and (iii) environmentally friendly measures will lead to positive environmental impacts and advance several UN Sustainable Development Goals.

PROJECT EVALUATION/SELECTION

ProCredit’s processes for project selection and evaluation is aligned with market standards. Project selection is decentralized: conducted by the business client advisers in the respective countries, which are then evaluated by the respective credit committee. ProCredit’s Group Environmental Steering Committee, which consists of members of the management board and the environmental coordinator has, in cases of doubt, the ultimate responsibility for selection and evaluation.

MANAGEMENT OF PROCEEDS

Aligned with market practice, ProCredit has systems in place to monitor and track use of proceeds. Unallocated proceeds will be invested in cash or cash equivalents.

REPORTING

ProCredit committed to publish a dedicated green bond report on an annual basis on allocation of proceeds to the eligible categories and geographical segments. In addition, ProCredit committed to report on impact indicators, including renewable energy generated, CO2 emissions avoided for renewable energy as well as loan volumes, numbers and geographical distribution for the other eligible categories. ProCredit also commits to disclose individual case studies. Sustainalytics recommends to also report on the amount of unallocated proceeds and to develop additional relevant impact indicators for each eligible category.