Project Details
Project
Sino-Ocean Group Holding Limited Green Finance Framework Second-Party Opinion (2021)
Client
Sino-Ocean Group Holding Limited
Project Type
Green Bond/Loan
Industry Group
Other
Use of Proceeds
Green buildings; Water/waste water management; Pollution prevention and control; Energy efficiency; Climate change adaptation;
Location
China
Evaluation Date
Feb 2021
Evaluation Summary
Sustainalytics is of the opinion that the Sino-Ocean Group Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018 and the Green Loan Principles 2020. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Green Buildings, Sustainable Water Management, Pollution Prevention and Control, Energy Efficiency, and Climate Change Adaptation – are aligned with those recognized by the Green Bond Principles 2018 and the Green Loan Principles 2020. Sustainalytics considers that the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 6, 7, 11 and 12.
PROJECT EVALUATION / SELECTION
Sino-Ocean Group’s internal process in evaluating and selecting projects is overseen by the Sustainable Development Management Committee (“SDMC”). The SDMC will meet every 12 months to review and select eligible projects according to the criteria outlined in the Framework. Shortlisted eligible projects will be approved by senior management of Sino-Ocean Group. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Sino-Ocean Group’s processes for management of proceeds is overseen by the Finance team. The net proceeds from each Green Financing Transaction (GFT) will be tracked and managed through a register. Sino-Ocean intends to complete the full allocation of proceeds within 1 year after the issuance. Pending full allocation, unallocated net proceeds raised under the GFT may be invested in cash or cash equivalents or used to repay existing borrowings under the general credit facilities of Sino-Ocean Group. This is in line with market practice.
REPORTING
Sino-Ocean Group intends to annually report on allocation of proceeds on its website until full allocation. The allocation report may contain the amount allocated to various eligible projects, the remaining balance of unallocated funds, type of temporary instrument, and the share of financing vs refinancing. In addition, Sino-Ocean Group is committed to reporting on relevant impact metrics. Sustainalytics views Sino-Ocean Group’s allocation and impact reporting as aligned with market practice.