Second-Party Opinion Download

Sustainalytics is of the opinion that the Green Bond Framework is credible and impactful and aligns to the four core components of the Green Bond Principles 2018. This assessment is based on the following: 

USE OF PROCEEDS

The eligible categories for the use of proceeds – Renewable Energy and Climate Change Adaptation – are aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers that the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 7 and 13. 

PROJECT EVALUATION / SELECTION

WAPDA’s internal process in evaluating and selecting projects is overseen by the Green Bond Committee (the “Committee”). The Committee is responsible for (i) confirming that the eligible projects are developed according to relevant environmental and social risk management regulations (ii) ensuring green projects are aligned with the eligibility criteria as specified in the Use of Proceeds (iii) reviewing and approving allocation and impact reports. This is in line with market practice. 

MANAGEMENT OF PROCEEDS

WAPDA’s processes for management of proceeds are overseen by the Finance department. WAPDA will manage and track allocation of proceeds by establishing a register of eligible green projects. The Issuer intends to allocate an amount equal to the net proceeds raised by the Green Bond Issuance within two years from the date of issuance. Pending allocation, the amount equal to net proceeds will be held in cash deposits on a temporary basis or held in deposit accounts of commercial banks. This is in accordance with the relevant WAPDA internal policies. This is in line with market practice. 

REPORTING WAPDA intends to report on allocation of proceeds on its website on an annual basis until full allocation. The allocation report is expected to include total amount of proceeds allocated to eligible green projects per category, noting instances where allocations could not be made as originally planned, the proportion of proceeds allocated to refinancing of existing eligible green projects, and unallocated proceeds. In addition, WAPDA is committed to reporting on relevant impact metrics. WAPDA intends to commission an external Compliance Review within one year of bond issuance and annually until full allocation. Sustainalytics views WAPDA’s allocation and impact reporting as aligned with market practice.