Second-Party Opinion Download

USE OF PROCEEDS

The eligible categories for the use of proceeds are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles and Social Loan Principles. The eligible categories are: Renewable Energy, Energy Efficiency, Clean Transportation, Green Buildings, Pollution Prevention and Control, Eco-efficient and/or Circular Economy Adapted Products, Production Technologies and Processes, Alternative Maritime Power, Sustainable Water and Wastewater Management, Environmentally Sustainable Management of Living Natural Resources and Land Use, Sustainable Food System (green category), Access to Essential Services (Healthcare), Access to Essential Services (Education), Employment Generation through SME Companies, Disaster Relief and Sustainable Food System (social category). Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 2, 3, 4, 6, 7, 8, 9, 11, 12 and 14.

PROJECT EVALUATION AND SELECTION

TSKB has established the Technical Analysis Team which will be responsible for the project evaluation and selection process. TSKB has processes in place to identify and mitigate common environmental and social risks potentially associated with the eligible projects. Sustainalytics considers the project selection process in line with market practice.

MANAGEMENT OF PROCEEDS

TSKB’s Financial Institutions and Investor Relations department will manage the net proceeds using a portfolio approach and track their allocation using an eligible loan portfolio. The Bank intends to allocate all proceeds to eligible projects within 24 months of each issuance. Pending allocation, TSKB will temporarily hold proceeds in cash, cash equivalents and money market funds in the Bank’s treasury liquidity portfolio. This is in line with market practice.

REPORTING

TSKB will report annually on the allocation of net proceeds and corresponding impact in a dedicated report, which will be published on its website until full allocation. TSKB has communicated to Sustainalytics that if it obtains revolving credit facilities, it will report on allocation until loan maturity. In addition, the Bank intends to report on relevant impact metrics. Sustainalytics views TSKB’s allocation and impact reporting as aligned with market practice.

CLIMATE TRANSITION FINANCE HANDBOOK

Sustainalytics has evaluated TSKB’s transition governance, strategy, decarbonization targets and intentions to report on transition progress and finds TSKB to be aligned with the recommendations of the Climate Transition Finance Handbook 2023.