Second-Party Opinion Download

Sustainalytics is of the opinion that the SY Holdings Group Social Financing Framework is credible and impactful, with one limitation, and aligns with the four core components of the Social Bond Principles 2021 and the Social Loan Principles 2021. This assessment is based on the following: 

USE OF PROCEEDS

The eligible categories1 for the use of proceeds are aligned with those recognized by the Social Bond Principles and Social Loan Principles. Sustainalytics considers that investments in the eligible categories are expected to contribute to underserved small and medium-sized enterprises, the overall supply chain ecosystem in China and advance the UN Sustainable Development Goals, specifically SDGs 3, 8 and 9, while also noting a limitation in the healthcare category. 

PROJECT EVALUATION / SELECTION

SY Holdings Group Limited’s ESG Working Group, Industrial Financing and Treasury departments will be responsible to identify, shortlist and approve the potential assets and/or projects in line with the eligibility criteria as set out in the framework. SY Holdings Group Limited has risk management and customer acceptance policies, which are applicable to all allocation decisions made under the Framework. Sustainalytics considers these risk management policies to be adequate and aligned with market expectations. 

MANAGEMENT OF PROCEEDS

SY Holdings Group Limited’s Finance Department is responsible for the management and allocation of proceeds and will track the net proceeds using an internal tracking system. SY Holdings Group Limited intends to fully allocate the proceeds to the eligible projects within a period of 12 months from the date of issuance. Pending allocation, unallocated proceeds may be held in cash in accordance with SY Holdings Group Limited’s cash investment policy. Sustainalytics considers this process to be in line with market practice. 

REPORTING

SY Holdings Group Limited intends to report on the allocation and impact of the proceeds on its website or through the Group’s ESG report annually until full allocation. The allocation report will include a summary of the eligible social projects funded, the total amount of proceeds allocated, and the balance of unallocated proceeds. SY Holdings Group Limited also commits to report the social impacts where feasible. Sustainalytics considers this process to be in line with market practice.