Project Details
Project
Slovenian Sovereign Sustainability Bond Framework Second-Party Opinion (2023)
Client
The Republic of Slovenia
Project Type
Sustainability Bond/Loan
Industry Group
Sovereign
Use of Proceeds
Clean transport; Energy efficiency; Natural resources/land use management; Climate change adaptation; Education; Health; Socio-economic advancement;
Location
Slovenia
Evaluation Date
Jan 2023
Evaluation Summary
USE OF PROCEEDS
The eligible categories for the use of proceeds – Low Carbon Transport; Energy Efficiency; Sustainable Environmental Management; Climate Change Adaptation; Access to Essential Services – Education, Healthcare, Social Inclusion; and Employment Generation and Socioeconomic Advancement and Empowerment – are aligned with those recognized by the Green Bond Principles and Social Bond Principles. Sustainalytics considers that the eligible categories are expected to deliver positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 2, 3, 4, 7, 8, 10, 11, 13 and 15.
PROJECT EVALUATION AND SELECTION
The Republic of Slovenia has established a Sustainability Bond Working Group which is responsible for evaluating and selecting eligible projects in line with the eligibility criteria. The Republic of Slovenia has in place processes for identifying and evaluating environmental and social risks associated with eligible projects. Sustainalytics considers these risk management systems and the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
The Republic of Slovenia’s Ministry of Finance will be responsible for the allocation and management of proceeds using an internal tracking system. The Republic of Slovenia intends to allocate net proceeds to eligible projects within two years of issuance, on a best-efforts basis. Pending allocation, proceeds will be temporarily held in cash, cash equivalents or other short-term market instruments according to prudential liquidity policies that are appropriate to a sovereign. Sustainalytics considers this to be in line with market practice.
REPORTING
The Republic of Slovenia intends to report on the allocation of proceeds and corresponding impact in separate allocation and impact reports which will be published on the Ministry of Finance’s website on an annual basis until full allocation. Allocation reporting may include details such as the total amount allocated per category, the balance of unallocated proceeds and the amount of financing versus refinancing. Sustainalytics views the Republic of Slovenia’s allocation and impact commitments as aligned with market practice.