Second-Party Opinion Download

Sustainalytics is of the opinion that the Rikshem Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Green Buildings, Clean Transportation, Energy Efficiency, Renewable Energy – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 7, 9 and 11.

PROJECT EVALUATION AND SELECTION

Rikshem’s Green Business Council will evaluate and approve projects in line with the eligibility criteria in the Framework. The Green Business Council is also responsible for the identification and management of environmental and social risks associated with the eligible projects. Sustainalytics considers the project evaluation and selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Rikshem’s Treasury department will be responsible for the management of net proceeds and will track their allocation using a green register through a portfolio approach. Rikshem intends to allocate proceeds within 24 months of issuance. Pending full allocation, unallocated proceeds will be invested temporarily in liquid instruments, such as short-term interest-bearing securities, in accordance with Rikshem’s sustainability policy, investment criteria and the exclusionary criteria of the Framework. This is in line with market practice.

REPORTING

Rikshem will report on the allocation of proceeds and corresponding impact in an annual report, which will be published on its website as long as there are bonds outstanding. Allocation reporting will include the nominal amount of outstanding bonds, a list and a brief description of the financed projects, the share of financing versus refinancing, the balance of unallocated proceeds, if any, and information on the share of financing by category, including the geographical distribution of projects. Sustainalytics views Rikshem’s allocation and impact reporting as aligned with market practice.