Project Details
Project
Barclays Capital Real Estate Inc. Social Bond Framework Second Party Opinion (2021)
Client
Barclays Capital Real Estate Inc.
Project Type
Social Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Oct 2021
Evaluation Summary
Sustainalytics is of the opinion that the STWD Trust 2021-LIH, Commercial Mortgage Pass-Through Certificates Series 2021-LIH Social Bond Framework is credible, impactful and aligns with the four core components of the Social Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds, Affordable Housing, is aligned with those recognized by the Social Bond Principles that seek to achieve positive socio-economic outcomes for target populations. Sustainalytics considers that the issuer’s financing of affordable housing assets will lead to positive social impacts and advance the UN Sustainable Development Goals (“SDGs”), specifically SDG 11.
PROJECT EVALUATION / SELECTION
The internal credit teams of Barclays Commercial Mortgage Securities LLC and Barclays Capital Real Estate Inc. assessed and selected the portfolio of eligible properties, and the mortgage loan that financed those properties. Barclays Capital Real Estate Inc. has conducted third-party environmental risk assessments for all the properties being refinanced under the eligible portfolio. Barclays PLC has a dedicated environmental and social risk assessment system that is applicable to all allocation decisions made under the Framework. Sustainalytics considers this process to be adequate and to be aligned with market practice.
MANAGEMENT OF PROCEEDS
The net proceeds from the issuance will be used solely for the purchase of a mortgage loan to refinance a portfolio of eligible properties. Proceeds will be disbursed immediately after issuance and neither Barclays Commercial Mortgage Securities LLC nor the issuer will retain flexibility to re-allocate. Sustainalytics considers this to be in line with market practice.
REPORTING
As part of its commitment to allocation reporting, Barclays Commercial Mortgage Securities LLC intends to provide a description of the eligible portfolio, along with its relevant social impact metrics to its investors through the initial offering document. Given the intent to immediately allocate net proceeds to purchase the mortgage loan, Sustainalytics considers the upfront reporting process to be aligned with market practice.