Project Details
Project
Raiffeisenbank Croatia Sustainability Bond Framework Second-Party Opinion (2022)
Client
Raiffeisenbank Croatia
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Croatia
Evaluation Date
Jun 2022
Evaluation Summary
Sustainalytics is of the opinion that the Raiffeisenbank Croatia Sustainability Bond Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021 and Social Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds1 are aligned with those recognized by the Green Bond Principles and Social Bond Principles. Sustainalytics considers that investments in the eligible categories are expected to deliver positive environmental and social impact, and advance the UN Sustainable Development Goals, specifically SDGs 2, 3, 4, 6, 7, 8, 9, 11, 12 and 15.
PROJECT EVALUATION / SELECTION
Raiffeisenbank Croatia’s Sustainability Bond Committee will be responsible for evaluating and selecting eligible projects that are in line with the eligibility criteria. Raiffeisenbank Croatia has in place internal procedures that incorporate ESG factors and associated risks for all allocation decisions. Sustainalytics considers these risk management systems to be adequate, and the project evaluation and selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Raiffeisenbank Croatia’s Sustainable Portfolio Manager (SPM) will be responsible for managing the net proceeds on a portfolio basis. The SPM will track the allocation of net proceeds using an internal sustainability bond register. Raiffeisen Bank Croatia intends to allocate all proceeds to eligible assets within 36 months of issuance and pending allocation, proceeds may be temporarily held in money market instruments, cash or cash equivalents. Sustainalytics considers this process to be in line with market practice.
REPORTING
Raiffeisenbank Croatia intends to report on the allocation of proceeds and corresponding impact in its allocation and impact report which will be published on its website on an annual basis until full allocation. Allocation reporting will include the amount of the bonds issued, the amount of bond proceeds outstanding, the amount of the proceeds allocated to eligible loans and the unallocated amount. In addition, Raiffeisenbank Croatia is committed to reporting on relevant impact metrics. Sustainalytics views Raiffeisenbank Croatia’s allocation and impact reporting as aligned with market practice.