Second-Party Opinion Download

Project Details

Project

Sanguine Impact Investment Green Bond Framework Second-Party Opinion (2022)

Client

Sanguine Securities Sàrl

Project Type

Green Bond/Loan

Location

Luxembourg

Evaluation Date

Feb 2022

Evaluation Summary

Sustainalytics is of the opinion that the Sanguine Impact Investment 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 – Renewable Energy, Energy Efficiency, Sustainable Transportation, Water Quality and Conservation, and Green Buildings – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories are expected to lead to positive environmental impacts through development of sustainable infrastructure and energy transition in emerging and developing economies, thereby helping to advance the UN Sustainable Development Goals, specifically SDGs 6, 7 and 11.

PROJECT EVALUATION / SELECTION

Sanguine’s Green/ Sustainable Investment Committee, which is chaired by Sanguine’s ESG General Manager, will be responsible for evaluating and selecting projects in line with the Framework’s eligibility criteria. Sanguine Impact Investment’s process for conducting individual environmental and social risk assessments as per IFC Performance Standards, is applicable to all allocation decisions under the Framework. Sustainalytics considers these risk management systems to be adequate and the project evaluation and selection process to be aligned with market practice.

MANAGEMENT OF PROCEEDS

Sanguine’s chief financial officer will be responsible for the management of proceeds, under the oversight of Sanguine’s board of directors, and will track the allocation of proceeds through a bond register, using a portfolio approach. Sanguine intends to allocate all proceeds within 24 months of issuance. Unallocated proceeds will be held or invested temporarily in cash, deposits or money market instruments. This is in line with market practice. 

REPORTING

Sanguine Impact Investment intends to report on the allocation and impact of proceeds in its Green Project Bond Report on its website on an annual basis until full allocation. Allocation reporting will include details such as the amount of proceeds allocated, the balance of unallocated proceeds, a list of outstanding bonds and the share of financing and refinancing. In addition, Sanguine is committed to reporting on relevant impact metrics. Sustainalytics views Sanguine’s allocation and impact reporting as aligned with market practice.


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