Project Details
Project
Takarék Mortgage Bank Green Covered Bond Framework Second-Party Opinion (2021)
Client
Takarék Mortgage Bank Co. Plc
Project Type
Green Bond/Loan
Industry Group
Banks
Use of Proceeds
Green buildings
Location
Hungary
Evaluation Date
Sep 2021
Evaluation Summary
Sustainalytics is of the opinion that the Takarék Mortgage Bank Green Covered Bond Framework is credible and impactful and aligns to the four core components of the Green Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds, Green Buildings, is aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible category will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 7, 9 and 11.
PROJECT EVALUATION / SELECTION
Takarék Mortgage Bank’s (“TMB”) Green Covered Bond Committee (“GCBC”) will oversee the internal process for evaluating and selecting projects, including reviewing, assessing and selecting all projects in accordance with eligibility criteria. TMB has internal procedures in place to identify and manage social and environmental risks associated with assets financed via the Framework, which are applicable to all allocation decisions made under the Framework. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
The GCBC will also oversee the management of proceeds, which will track allocation to eligible assets using existing internal tracking systems following a portfolio approach. Unallocated proceeds will be temporarily held in TMB’s liquid asset portfolio. This is in line with market practice.
REPORTING
TMB intends to report on the allocation of proceeds on its website on an annual basis until full allocation. The report will include the size of the identified Eligible Green Loan Portfolio, the total amount allocated to Eligible Green Loans, the balance of unallocated proceeds, and the share of financing versus refinancing. In addition, TMB is also committed to reporting on relevant impact metrics. Sustainalytics views TMB’s allocation and impact reporting as aligned with market practice.