Second-Party Opinion Download

Sustainalytics is of the opinion that the SAEL 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 category for the use of proceeds – Renewable Energy – is aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible category are expected to contribute to increasing the share of renewable energy in India and help advance the UN Sustainable Development Goals, specifically SDG 7.

PROJECT EVALUATION / SELECTION

SAEL Limited’s Project Monitoring Committee (PMC), which is comprised of its Chief Operating Officer, Chief Financial Officer, Operations & Maintenance Head and Debt Head will be responsible for evaluating and selecting projects in line with the Framework’s eligibility criteria. The PMC will identify and manage potentially material environmental and social risks in relation to all allocation decisions made under the Framework. Sustainalytics considers this risk management system to be adequate and the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

SAEL Limited’ accounting and finance department will be responsible for the management and allocation of proceeds to eligible green projects. The accounting and finance department will track the net proceeds using an internal project register and intends to allocate all proceeds within 36 months of issuance. Pending allocation, unallocated proceeds may be temporarily invested in cash, cash equivalents, and held in accordance with the internal liquidity policy. Sustainalytics considers this process to be line with market practice.

REPORTING

SAEL Limited intends to report on allocation and impact of proceeds through a Green Bond Report on its website on an annual basis until full allocation. Allocation reporting will include the total amount allocated to eligible projects, list of eligible projects, the amount of unallocated proceeds, as well as the share of financing versus refinancing. In addition, SAEL is committed to reporting on relevant impact metrics. Sustainalytics views SAEL’s allocation and impact reporting as aligned with market practice.