Second-Party Opinion Download

Sustainalytics is of the opinion that Xunta de Galicia’s Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – (i) Renewable Energy, (ii) Energy Efficiency, (iii) Pollution Prevention and Control, (iv) Environmentally Sustainable Management of Living Natural Resources and Land Use, (v) Clean Transportation, (vi) Sustainable Water and Wastewater Management, (vii) Affordable Basic Infrastructure, (viii) Access to Essential Services, (ix) Affordable Housing, (x) Employment Generation, and (xi) Socioeconomic Advancement and Empowerment – are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals (SDGs), specifically SDG 3, 4, 6, 7, 8, 9, 10, 11, and 15.

PROJECT EVALUATION/SELECTION

Xunta de Galicia will establish a Sustainable Finance Committee in charge of project evaluation and selection. The Sustainable Finance Committee will be comprised of members from the General Direction for Financial Policy, Treasury and European Funds, and the General Direction for Planning and Budgeting. Sustainalytics considers the project selection process in line with market practice.

MANAGEMENT OF PROCEEDS

The General Direction for Financial Policy Treasury and European Funds will be in charge of supervising net proceeds, and Xunta de Galicia will track funds through its budgetary system. Pending allocation, net proceeds will be temporarily kept in liquidity positions or term deposits. This is in line with market practice.

REPORTING

Xunta de Galicia intends to share allocation and impact reports with investors on an annual basis and until full allocation on the Xunta de Galicia website. Allocation reporting will include the amounts of net proceeds allocated to eligible budget programs and each eligible category. In addition, Xunta de Galicia is committed to reporting on relevant impact metrics. Sustainalytics views Xunta de Galicia’s allocation and impact reporting as aligned with market practice.