Project Details
Project
QTS Hillsboro Green Loan Framework Second-Party Opinion (2022)
Client
QTS Investment Properties Hillsboro LLC
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Aug 2022
Evaluation Summary
Sustainalytics is of the opinion that the QTS Hillsboro Green Loan Framework is credible and impactful and aligns with the four core components of the Green Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds, Energy Efficiency, Sustainable Water and Wastewater Management, is aligned with those recognized by the Green Loan Principles. Sustainalytics considers that investments in the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 6 and 7.
PROJECT EVALUATION / SELECTION
QTS Investment Properties Hillsboro LLC has selected the eligible green Project in accordance with the criteria under the Framework and has evaluated the characteristics of the Project against benchmarks and industry practices applicable to the design, construction and completion of data centres. QTS Investment Properties Hillsboro LLC has mandated experts to evaluate the environmental and social risks associated with the Project and implement related mitigating measures. Moreover, QTS Investment Properties Hillsboro LLC will provide an Independent Engineer Report to the lenders and issuing banks prior to the loan closing date, which identifies the Project’s environmental and social risks in compliance with the Equator Principles. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
QTS Investment Properties Hillsboro LLC will be responsible for tracking and managing the use of loan proceeds. QTS Investment Properties Hillsboro LLC intends to reach full allocation of the net loan proceeds upon the disbursement of the loan. Pending full allocation QTS Investment Properties Hillsboro LLC will manage the proceeds in accordance with the loan agreement. This is in line with market practice.
REPORTING
QTS Investment Properties Hillsboro LLC commits to disclosing allocation and the corresponding environmental impact reporting in qualitative and/or quantitative terms to its lenders on an annual basis during the term of the loan agreement. Sustainalytics views QTS Investment Properties Hillsboro LLC’s allocation and impact reporting as aligned with market practice.