Project Details
Project
Bank Mandiri Sustainability Bond Framework Second-Party Opinion (2021)
Client
PT Bank Mandiri (Persero) Tbk. (or “Bank Mandiri”)
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Water/waste water management; Energy efficiency; Green buildings; Renewable energy; Clean transport; Eco-efficient products; Climate change adaptation; Health; Education;
Location
Indonesia
Evaluation Date
Mar 2021
Evaluation Summary
Sustainalytics is of the opinion that the Bank Mandiri Sustainability Bond Framework aligns with the Green Bond Principles 2018 (GBP), Social Bond Principles 2020 (SBP), and ASEAN Sustainability Bond Standards 2018 (ASEAN SUS). This assessment is based on the following:
Use of Proceeds
The eligible categories for the use of proceeds are aligned with those recognized by GBP, SBP, and ASEAN SUS. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 3, 4, 5, 6, 7, 8, 9, 10, 11, and 13.
Project Evaluation / Selection
Bank Mandiri’s Sustainable Finance Working Group (the “Working Group") will be responsible for project evaluation and selection. Bank Mandiri follows a three-step approach to ensure that projects comply with the eligibility criteria set in the Framework. The Risk Management & Credit Policy Committee will have final say over which projects are eligible. Sustainalytics considers the project selection process in line with market practice.
Management of Proceeds
The Working Group will oversee the management of proceeds, tracking the proceeds via Bank Mandiri’s internal information systems. Bank Mandiri intends to reach full allocation within two years after issuance. Pending allocation, unallocated proceeds may be invested in cash or marketable instruments, per Bank Mandiri's liquidity management strategy. This is in line with market practice
Reporting
Bank Mandiri intends to report on allocation of proceeds on its website, on an annual basis, until full allocation. Allocation reporting will include the amount of eligible assets by project category and the remaining balance of unallocated proceeds at the end of the reporting period. In addition, Bank Mandiri is committed to reporting on relevant impact metrics. Sustainalytics views Bank Mandiri’s allocation and impact reporting as aligned with market practice.
Alignment with the ASEAN Sustainability Bond Standards
The ASEAN Sustainability Bond Standards provide guidance to issuers and communicate more specifically what an issuer should do to issue a credible sustainable bond within Southeast Asia. Sustainalytics is of the opinion that the green and social categories under the Framework align with the ASEAN Sustainability Bond Standards.