Second-Party Opinion Download

Sustainalytics is of the opinion that the VakıfBank Sustainable Finance Framework is credible, impactful and aligns with the Green Bond Principles 2018 (GBP), Green Loan Principles 2018 (GLP), and Social Bond Principles 2018 (SBP). This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – (i) Renewable Energy, (ii) Pollution Prevention and Control, (iii) Green Buildings, (iv) Affordable Housing, and (v) Employment Generation – are aligned with those recognized by both the GBP, GLP and SBP. Sustainalytics considers that the eligible categories will foster local renewable energy investments, promote sustainable resource management, and support employment generation in Turkey while contributing to the UN Sustainable Development Goals (SDGs), specifically SDG 7, 8, 9, 11 and 12.

PROJECT EVALUATION/SELECTION

The project evaluation and selection process will be managed by the VakıfBank Sustainability Working Group (the “Group”), which is comprised of a wide range of cross-functional representatives. The Group will monitor and evaluate the asset pool regularly to ensure the alignment of the assets with the eligibility criteria. Additionally, the Group will meet at least bi-annually to review the project evaluation and selection process. Sustainalytics considers this process in line with market practice.

MANAGEMENT OF PROCEEDS

Eligible assets will be managed by the Group on a portfolio basis. The Group will track the proceeds through a Sustainability Financing Register which will be adjusted bi-annually in line with the eligibility criteria under the Framework. Any existing projects that no longer meet the eligibility criteria will be substituted with new projects on a best-efforts basis. Pending allocation, unallocated proceeds will be temporarily held in cash, cash equivalents, and marketable securities. This is in line with market practice.

REPORTING

VakıfBank intends to publish allocation and impact reports on its website on an annual basis until full allocation. Regarding allocation reporting, VakıfBank intends to disclose the amount or percentage of allocation, examples of financed projects, the amount of proceeds allocated by project category, distribution of projects by region, the share of financing and refinancing, and the balance of unallocated proceeds. Where feasible, VakıfBank is committed to reporting on relevant impact metrics. Sustainalytics views this reporting process as aligned with market practice.