Project Details
Project
TSKB Sustainable Finance Framework Second-Party Opinion (2020)
Client
TSKB
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Renewable energy; Energy efficiency; Clean transport; Green buildings; Pollution prevention and control; Eco-efficient products; Access to essential services; Employment generation and Socio-economic empowerment;
Location
Türkiye
Evaluation Date
Dec 2020
Evaluation Summary
Sustainalytics is of the opinion that the TSKB Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Renewable Energy, Energy Efficiency, Clean Transportation, Green Buildings, Pollution Prevention and Control, Eco-efficient and/or Circular Economy Adapted Products, Production Technologies and Processes, Access to Essential Services (Healthcare), Access to Essential Services (Education), Employment Generation and Sustainable Infrastructure – are aligned with those recognized by the Green Bond Principles 2018, Social Bond Principles 2020 and Green Loan Principles 2020. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically Goals 3, 4, 7, 8, 9, 10, 11 and 12.
PROJECT EVALUATION / SELECTION
Türkiye Sınai Kalkınma Bankası’s Technical Analysis Team, comprised of members from the Bank’s Engineering Department and Financial Analysis Department, will be responsible for overseeing the project evaluation and selection process. The Bank’s Credit Evaluation Committee must sign off on all projects. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Türkiye Sınai Kalkınma Bankası will track the net proceeds of the issuances under the Framework using a portfolio approach, whereby proceeds will be allocated to a portfolio of loans that meet the use of proceeds eligibility criteria. Pending allocation, TSKB will hold and/or invest the balance of net proceeds in a treasury portfolio in cash or cash equivalents and/or in money market funds. The Bank intends to fully allocate within 24 months of any issuance. This is in line with market practice.
REPORTING
Türkiye Sınai Kalkınma Bankası intends to provide allocation and impact reporting on an annual basis, until full allocation. Allocation reporting will be conducted at the aggregate level, and will include the total amount of proceeds allocated, the balance of unallocated proceeds and the amount of new financing vs. refinancing. In addition, Türkiye Sınai Kalkınma Bankası will report on relevant quantitative and qualitative impact metrics, where feasible. Sustainalytics views Türkiye Sınai Kalkınma Bankası ’s allocation and impact reporting as aligned with market practice.