Project Details
Project
Sovcombank Social Bond Framework Second-Party Opinion (This opinion is no longer valid since March 14th 2022, given that the company is subject to sanctions as a result of the situation in Ukraine)
Client
Sovcombank
Project Type
Social Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Russia
Evaluation Date
Sep 2020
Evaluation Summary
Sustainalytics is of the opinion that the Sovcombank Social Bond Framework is credible and impactful and aligns with the four core components of the Social Bond Principles 2020. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds, Zero-Interest Installment Cards for Low-to-Medium Income Individuals, is aligned with those recognized by the Social Bond Principles that seek to achieve positive socio-economic outcomes for target populations. Sustainalytics considers that the eligible category will lead to positive social impacts by improving to Access to Financial Services and advance the UN Sustainable Development Goals, specifically SDGs 1 and 8.
PROJECT EVALUATION/SELECTION
Sovcombank has charged its Corporate and Investment Banking division with reviewing the installment card portfolio to ensure compliance with the Framework. This process is in line with market practice.
MANAGEMENT OF PROCEEDS
The proceeds will be earmarked for allocation to the eligible portfolio of installment card loans. The Corporate and Investment Banking division will manage this process. Pending allocation, proceeds may be temporarily held in line with the Bank’s liquidity policy. This process is in line with market practice.
REPORTING
Sovcombank will report annually on the amount allocated to the installment card portfolio, as well as disclose any unallocated proceeds. The reporting will also include impact metrics, in the form of demographic information such as age and income distribution as well as spending categories.