Second-Party Opinion Download

Sustainalytics is of the opinion that the Yango Group Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018 and the Green Loan Principles 2020. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Green Buildings, Energy Efficiency, Pollution Prevention and Control, Sustainable Water Management – are aligned with those recognized by the Green Bond Principles 2018 and the Green Loan Principles 2020. Sustainalytics considers that the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 11 and 12.

PROJECT EVALUATION/SELECTION

Yango Group’s Green Bond Working Group will oversee the selection of eligible projects to be reviewed and ultimately approved by the Company’s Chairman and senior management. Sustainalytics considers the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Yango Group will track net proceeds through the Company’s internal information system. Yango Group intends to maintain an Eligible Green Project Portfolio that matches or exceeds the net proceeds. Pending allocation, net bond proceeds will be held in cash and/or invested in short-term liquid instruments. This is in line with market practice.

REPORTING

Yango Group intends to report allocation proceeds on its website on an annual basis until full allocation. Allocation reporting will include (i) the issuance amount or percentage of allocation to the Eligible Green Portfolio; (ii) examples of projects being financed; (iii) amount of proceeds allocated by Project Category; (iv) portion of net proceeds used for financing vs. refinancing; and (v) the balance of unallocated proceeds. In addition, Yango Group is committed to reporting on relevant impact metrics. Sustainalytics views Yango Group allocation and impact reporting as aligned with market practice.