Second-Party Opinion Download

Sustainalytics is of the opinion that the Sanctuary Sustainable Finance Framework is credible, impactful and aligned with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2023, Green Loan Principles 2025 and Social Loan Principles 2025. This assessment is based on the following:

USE OF PROCEEDS

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

PROJECT EVALUATION AND SELECTION

Sanctuary has established a Strategic Asset and Development Committee (SADC), which is responsible for evaluating and selecting projects in line with the Framework’s eligibility criteria. The Company identifies potential environmental and social risks during the project’s evaluation stage, where the relevant team assesses and reports those risks to the SADC, which then develops appropriate mitigation measures. Sustainalytics considers the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

The proceeds will be deposited into the main bank account or in a separate ring-fenced bank account of Sanctuary’s borrowers. The SADC, with the support of the Sustainability and Treasury teams, will be responsible for tracking and monitoring the net proceeds using internal reporting systems. The Company intends to allocate proceeds within 24 months of each issuance. Pending full allocation, unallocated proceeds will be temporarily held in overnight cash deposits or term accounts, invested in sterling-denominated money market funds or ESG bonds and deposits, and used for the short-term repayment of other debt facilities, in line with its Treasury Management Policy. Sanctuary will not use the temporary proceeds to allocate to carbon-intensive assets. This is in line with market practice.

REPORTING

Sanctuary will report on the allocation of proceeds and their corresponding impact in a sustainability report, which will be published annually on its website until full allocation and thereafter in the event of any material reallocation resulting from reassignments or developments during the life of an outstanding instrument. Allocation reporting will include a description of financed projects and those that are eligible to be financed; the total amount of proceeds outstanding for each instrument; the amount of net proceeds allocated to each eligibility category; the share of new financing versus refinancing; and the balance of unallocated proceeds. Sustainalytics considers the allocation and impact reporting commitments to be aligned with market practice.