Second-Party Opinion Download

Sustainalytics is of the opinion that the Yapı Kredi Sustainability Bond Framework aligns with the Green Bond Principles 2018 (GBP), Social Bond Principles 2020 (SBP) and 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) Green Buildings, (iii) Clean Transportation, (iv) Energy Efficiency, (v) Access to Essential Services, (vi) Employment Generation– are aligned with those recognized by the GBP and SBP. Sustainalytics considers that the eligible categories will facilitate the transition towards a low-carbon economy and advance the national socio-economic development in Turkey, while contributing to the UN Sustainable Development Goals (SDGs), specifically SDG 3, 4, 5, 7, 8, 9,10 and 11.

PROJECT EVALUATION/SELECTION

Yapı Kredi’s Sustainability Bonds Working Group (“Group”), comprised of members from Treasury Department, Corporate Communications Department - Sustainability Division, Corporate and Commercial Banking Department, Investor Relations Department, Retail Banking Department and Credits Department, will be responsible for the review and approval of the eligible assets in accordance with the eligibility criteria and the Bank’s internal policies. Sustainalytics considers this process in line with market practice.

MANAGEMENT OF PROCEEDS

The net use of proceeds will be managed by Treasury and Sales Departments using a portfolio approach. The net proceeds will be tracked by Yapı Kredi’s credit monitoring system. Allocation of proceeds will be monitored biannually. When necessary, existing assets will be substituted with new eligible assets in the portfolio. Pending allocation, the unallocated proceeds will be temporarily held in cash and/or cash equivalents, and/or other liquid marketable instruments. This process is in line with market practice.

REPORTING

Until full allocation, Yapı Kredi intends to annually report on the allocation and impact of proceeds on its website. Allocation reporting will include (i) total amount and the number of loans allocated to eligible assets, (ii) the amount of proceeds allocated to each eligible category, (iii) the share of financing or refinancing, (iv) the total amount of unallocated proceeds, and (v) the total allocated assets portfolio at country level. In addition, Yapı Kredi commits to reporting on relevant impact metrics. Moreover, Yapı Kredi may engage with an external party to conduct a limited assurance review for its allocation reporting. The process of allocation and impact reporting is aligned with market practice.