Project Details
Project
Fantasia Sustainable Finance Framework Second-Party Opinion
Client
Fantasia Holdings Group Company Limited
Project Type
Sustainability Bond/Loan
Industry Group
Real Estate
Use of Proceeds
Green buildings; Energy efficiency; Renewable energy; Pollution prevention and control; Water/waste water management; Clean transport; Affordable housing; Access to essential services;
Location
China
Evaluation Date
Mar 2021
Evaluation Summary
Sustainalytics is of the opinion that the Fantasia Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018, Green Bond Principles 2018, Social Bond Principles 2020, and Green Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds — Green Buildings, Energy Efficiency, Renewable Energy, Pollution Prevention and Control, Sustainable Water and Wastewater Management, Clean Transportation, Affordable Housing, and Access to Essential Services — are aligned with those recognized by both the Green Bond Principles, Social Bond Principles, and Green Loan Principles. Sustainalytics considers that the eligible categories are expected to provide social benefits and reduce the environmental footprint of Fantasia’s buildings portfolio while advancing the UN Sustainable Development Goals, specifically SDG 6, 7, 9, 11, and 12.
PROJECT EVALUATION/SELECTION
Fantasia’s Sustainable Finance Committee (“the Committee”) will be responsible for the project evaluation and selection. The Committee will meet quarterly to ensure project selection is in line with the Framework’s eligibility criteria and manage any future updates to the Framework. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Fantasia’s Treasury team will be responsible for the management of proceeds. The net proceeds will be deposited in the Company’s general funding account and tracked using a register. Fantasia intends to reach full allocation within 12 months after issuance. Pending allocation, unallocated proceeds will be held in short-term investments in line with Fantasia’s liquidity management policy or used to repay existing indebtedness. This is in line with market practice.
REPORTING
Fantasia intends to report on the allocation and impact of proceeds on its website on an annual basis until full allocation. Allocation reporting will include the allocated amounts per category, geographical distribution, the share of financing vs refinancing, the amount of unallocated proceeds. In addition, Fantasia is committed to reporting on relevant impact metrics. Sustainalytics views Fantasia’s allocation and impact reporting as aligned with market practice.