Project Details
Project
VPBank Sustainable Finance Framework Second Party Opinion (2024)
Client
VPBank
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Renewable energy; Energy efficiency; Clean transport; Water/waste water management; Natural resources/land use management; Pollution prevention and control; Green buildings; Climate change adaptation; Access to essential services; Employment generation and Socio-economic empowerment; Education; Health; Socio-economic advancement; Eco-efficient products; Affordable housing; Affordable basic infrastructure;
Location
Vietnam
Evaluation Date
Aug 2024
Evaluation Summary
Sustainalytics is of the opinion that the VPBank Sustainable Finance Framework is credible, impactful and aligned with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2023, Green Loan Principles 2023 and Social Loan Principles 2023. This assessment is based on the following:
USE OF PROCEEDS - The eligible categories1 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. 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 3, 4, 6, 7, 9, 11, 12, 13, 14 and 15.
PROJECT EVALUATION AND SELECTION - VPBank’s E&S Specialists, Sustainable Finance Specialists, Appraisal Unit and Credit Committee will be responsible for evaluating and selecting projects as per the Framework’s eligibility criteria. VPBank has established an environmental and social screening and assessment system, with the E&S specialists responsible for assessing potential risks associated with the eligible projects. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS - VPBank’s Balance Sheet Management Department will be responsible for the management and allocation of proceeds through its centralized tracking database. The Bank intends to allocate all proceeds to eligible projects and assets within 36 months of issuance. Pending allocation, unallocated proceeds will be temporarily held in cash, cash equivalents and marketable instruments. This is in line with market practice.
REPORTING - VPBank commits to report on the allocation of proceeds on an annual basis until full allocation. Allocation reporting may include the amount of proceeds allocated to eligible projects and assets, the proportion of net proceeds allocated to new investments and remaining balance of unallocated proceeds, and the proportion of proceeds allocated to financing and refinancing projects. In addition, VPBank intends to report on relevant green and social impact metrics on a project or portfolio level. Sustainalytics considers the allocation and impact reporting commitments as aligned with market practice.