Second-Party Opinion Download

Sustainalytics is of the opinion that the Xior Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, Green Loan Principles 2021 and Social Loan Principles 2021. This assessment is based on the following: 

USE OF PROCEEDS

The eligible categories for the use of proceeds - Green Buildings, Renewable Energy, Energy Efficiency, Clean Transportation, Water Management, and Affordable Housing - 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 are expected to lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 9, and 11.

PROJECT EVALUATION AND SELECTION

Xior’s ESG Taskforce will be responsible for the selection and evaluation of eligible assets in line with the Framework’s eligibility criteria. Xior will evaluate activities in line with its internal policies, as well as with regional, national and international laws, standards and regulations pertaining to environmental and social risk management. Sustainalytics considers the risk management system to be adequate and the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Xior’s finance team will be responsible for the management of proceeds on a portfolio basis and will track the proceeds using an internal tracking system. Xior intends to allocate net proceeds to eligible assets within 24 months of issuance. Pending allocation, unallocated proceeds will be temporarily invested in cash, cash equivalent or short-term money market instruments in accordance with Xior’s investments and treasury policy.

REPORTING

Xior intends to report on the allocation and impact of net proceeds in the ESG report published as part of its annual report on its website until full allocation. Allocation reporting may include the amount of net proceeds allocated to eligible projects, share of financing versus refinancing, balance of unallocated proceeds, among others. In addition, Xior  is committed to reporting on relevant impact metrics. Sustainalytics views Xior’s allocation and impact reporting as aligned with market practice.