Second-Party Opinion Download

Sustainalytics is of the opinion that the VPBank Social Finance Framework is credible and impactful and aligns with the four core components of the Social Bond Principles 2021 and the Social Loan Principles 2021. This assessment is based on the following:

USE OF PROCEEDS The eligible categories for the use of proceeds (Access to Essential Services – Financial Inclusion, Employment Generation, Socio-economic Advancement and Empowerment; Access to Essential Services – Healthcare; Access to Essential Services – Education and Vocational Training; Affordable Housing; and Affordable Basic Infrastructure – Clean Drinking Water, Sanitation, Transport and Telecom Network) are aligned with those recognized by the Social Bond Principles and Social Loan Principles that seek to achieve positive socio-economic outcomes in Vietnam. Sustainalytics considers that investments in the eligible categories are expected to lead to positive social impacts and advance the UN Sustainable Development Goals, specifically SDGs 3, 4, 9 and 11.

PROJECT EVALUATION / SELECTION Vietnam Prosperity Joint Stock Commercial Bank’s Credit Committee and E&S Specialists will be responsible for evaluating and selecting eligible projects in line with the eligibility criteria in the Framework. The Vietnam Prosperity Joint Stock Commercial Bank has established an environmental and social risk management system that is applicable to all allocation decisions made under the Framework. Sustainalytics considers the project selection process in line with the Social Bond Principles and Social Loan Principles.

MANAGEMENT OF PROCEEDS Vietnam Prosperity Joint Stock Commercial Bank’s Balance Sheet Management Department will be responsible for the management and allocation of proceeds through its internal information system. The Bank intends to allocate all proceeds to eligible assets within 36 months of issuance. Unallocated proceeds will be temporarily held in cash and cash equivalents in accordance with the Bank’s liquidity management strategy. This is in line with the Social Bond Principles and Social Loan Principles.

REPORTING Vietnam Prosperity Joint Stock Commercial Bank intends to report on the allocation of proceeds to its investors on an annual basis until full allocation. Allocation reporting will include the amount of proceeds allocated to eligible categories, the balance of unallocated proceeds and the share of proceeds allocated to financing versus refinancing of projects. The Vietnam Prosperity Joint Stock Commercial Bank also intends to disclose relevant social metrics either on each project or on a portfolio level. Sustainalytics views Vietnam Prosperity Joint Stock Commercial Bank’s allocation and impact reporting as aligned with the Social Bond Principles and Social Loan Principles.