Project Details
Project
Türkiye İş Bankası Sustainability Bond Second-Party Opinion
Client
Türkiye İş Bankası
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Türkiye
Evaluation Date
Jan 2020
Evaluation Summary
Sustainalytics is of the opinion that the Türkiye İş Bankası A.Ş. (İşbank) Sustainability Bond Framework is credible and impactful, and aligns with the Green Bond Principles 2018, Social Bond Principles 2018 and Sustainability Bond Guidelines 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – (i) Renewable Energy, (ii) Energy Efficiency, (iii) Eco-efficient and/or Circular Economy Adapted Products, (iv) Green Buildings, (v) Clean Transportation, (vi) Pollution Prevention and Control, (vii) Environmentally Sustainable Management of Living Natural Resources and Land Use, (viii) Access to Essential Services, and (ix) Employment generation, including through the potential effect of SME financing -- are aligned with those recognized by both the Green Bond Principles 2018 and Social Bond Principles 2018. Sustainalytics considers the eligible projects to have positive environmental or social impacts and to advance several of the UN Sustainable Development Goals.
PROJECT EVALUATION/SELECTION
İşbank has a dedicated Sustainability Bond Working Group (the “SBWG”) to assess and determine eligible projects. The SBWG consists of representatives from various departments, including Investor Relations who are responsible for İşbank‘s sustainability oversight. This is in line with market practice.
MANAGEMENT OF PROCEEDS
İşbank will allocate to a portfolio of loans and ensure that the Sustainable Loan Portfolio is adjusted periodically in order to match the amount of net proceeds of outstanding bonds issued under the Framework. Pending allocation, proceeds may be temporarily invested in cash and/or cash equivalent, and/or liquid marketable instruments. Sustainalytics considers this to be in line with market practice.
REPORTING
İşbank intends to publish a report on its website annually until full allocation. The allocation reporting will include the total amount of proceeds allocated to eligible loans, the number of eligible loans, the balance of unallocated proceeds and the portion of new financing and refinancing. İşbank will also report on the environmental and social impacts of the projects, where feasible. İşbank’s allocation and impact reporting is aligned with market practice.