Project Details
Project
KASIKORNBANK Sustainability Bond Second-Party Opinion
Client
KASIKORNBANK (KBank)
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Thailand
Evaluation Date
Oct 2018
Evaluation Summary
Sustainalytics is of the opinion that the KASIKORNBANK (KBank) Sustainability Bond Framework 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 - (i) Renewable Energy, (ii) Energy Efficiency, (iii) Green Buildings, (iv) Clean Transportation, (v) Access to Essential Services, (vi) Affordable Housing, (vii) Employment Generation, (viii) Socioeconomic Advancement and Empowerment - are aligned with those recognized by the Sustainability Bond Guidelines which adheres to the Green Bond Principles and Social Bond Principles. Although the bond is not exclusively project-based, Sustainalytics considers that the eligible green and social projects will provide meaningful environmental and socioeconomic contributions and advance the SDGs.
PROJECT EVALUATION/SELECTION
A dedicated Sustainable Bond Working Group (SBWG) will oversee KBank’s project selection process under the coordination of the Central Treasury Department and Sustainable Development Unit. KBank also formalized an environmental and social impact assessment process prior to project selection process, which Sustainalytics assesses as aligned with market practices.
MANAGEMENT OF PROCEEDS
KBank’s Central Treasury Department will manage the allocation of net bond proceeds to a project register in coordination with the Sustainable Development Unit and with the oversight of the bank’s Office of Corporate Secretary. Pending full allocation, the unallocated proceeds will be invested in line with KBank’s Banking Book Management Policy. Sustainalytics views this process to be in line with market practices.
REPORTING
KBank commits to disclosing an allocation and impact report annually on the company’s website. With regards to the allocation report, KBank will provide relevant transaction information such as the list of projects financed and their description or the amount allocated, among others. The impact report will comprise various KPIs on environmental and social topics such as the amount of renewable energy generated or the number of people benefitting from social projects. Sustainalytics assesses KBank’s reporting commitments to be in line with market practices.