Second-Party Opinion Download

Sustainalytics is of the opinion that the Krungsri Women Bond Framework is credible and impactful, and aligns with the four core components of the Social Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – (i) Employment generation through women-owned SME financing and microfinance for women, and (ii) Socioeconomic advancement and empowerment through financing for low income women and disadvantaged female groups – are aligned with those recognized by the Social Bond Principles. Sustainalytics considers that the Eligible Assets will provide positive social impacts by improving access to finance for underserved segments of women while advancing the UN Sustainable Development Goals, specifically Goal 5, 8 and 10.

PROJECT EVALUATION/SELECTION

Krungsri’s Women Bond SubCommittee, which consists of representatives from Global Markets Department, Risk Department, Retail and Consumer Banking Department, and Finance Department under the CFO Office, will oversee the project evaluation and selection process. After the initial assessment of Eligible Assets by SME Banking and Retail & Consumer Banking Divisions, the evaluation and selection of shortlisted assets will be conducted by the Krungsri’s Women Bond Sub-Committee based on the eligibility criteria. Sustainalytics regards Krungsri’s project evaluation and selection as in line with market practice.

MANAGEMENT OF PROCEEDS

Krungsri’s Strategic Assets and Liabilities Management Department will manage the Women Bond proceeds on a quarterly basis. The net proceeds of the Women Bond will be deposited into Krungsri’s liquidity management account and earmarked for allocation to Eligible Assets. Pending full allocation funds will be invested in short-term money market investments and government bonds according to Krungsri Treasury’s liquidity management procedures. Sustainalytics considers Krungsri’s management of proceeds to be in line with market practice.

REPORTING

Krungsri intends to report annually on the allocation and impact of proceeds on Krungsri’s website. Allocation reporting will include information on the total amount of allocated proceeds, total number of facilities financed, and the amount of unallocated proceeds. To the extent available, Krungsri will disclose relevant performance metrics in its impact reporting. Sustainalytics views Krungsri’s allocation and impact reporting as aligned with market practice.