Project Details
Project
BlueHub Loan Fund Sustainability Bond Framework Second-Party Opinion
Client
BlueHub Loan Fund
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
U.S.
Evaluation Date
Dec 2019
Evaluation Summary
Sustainalytics is of the opinion that the BlueHub Loan Fund Sustainability Bond Framework, contained within the bond’s POM, 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 are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers social projects related to the areas of affordable housing, community healthcare, early education and child care, economic opportunity, education and healthy foods and green projects in the areas of LEED certifications, transit-oriented development, adaptive reuse and energy retrofitting to have positive environmental and/or social impacts and to advance various UN Sustainable Development Goals.
PROJECT EVALUATION/SELECTION
BlueHub’s Loan Committee is responsible for lending authority and oversight of BHLF’s loan approvals. All loan requests over USD 1 million are approved by the Loan Committee, while loan requests under USD 1 million require review and approval at the staff level by the Loan Fund President and at least one additional BHLF signer. The Committee convenes biweekly to review loan requests. The Board of Directors reviews and approves the loan policies and procedure guidelines annually. This is in line with market practice.
MANAGEMENT OF PROCEEDS
BHLF will fully allocate the proceeds of the bond at time of issuance to refinance a previously identified portfolio of projects, and as such, there is no requirement for ongoing management. This is in line with market practice.
REPORTING
BHLF intends to fully allocate at the time of issuance, therefore no further allocation reporting is deemed necessary which is in line with market practice. BHLF will report on projects in line with its existing project disclosure policies, until full allocation, after which reporting is conducted on a voluntary basis; this will be published in addition to its annual report on its website. Sustainalytics views BHLF’s approach to reporting positively and notes that it has a proven record of financing impactful projects.