Project Details
Project
KEB Hana Bank Sustainable Financing Second-Party Opinion
Client
KEB Hana Bank
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
South Korea
Evaluation Date
Nov 2018
Evaluation Summary
Sustainalytics is of the opinion that the KEB Hana Bank (KHB) Sustainable Financing Framework is credible and impactful, and aligns with the Sustainability Bond Guidelines 2018 and the Green Loan Principles. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – (i) SME Financing, (ii) Socioeconomic Advancement and Empowerment, (iii) Affordable Housing, (iv) Employment Generation, (v) Clean Transportation (vi) Renewable Energy, and (vii) Green Buildings - are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Sustainability Bond Guidelines and Green Loan Principles. Although the financing is not exclusively project-based, Sustainalytics considers the eligible green and social projects to have positive environmental and social impacts and to advance the UN Sustainable Development Goals.
PROJECT EVALUATION/SELECTION
A dedicated Sustainable Financing Working Group (SFWG) will oversee KHB’s internal process in evaluating and selecting projects. The SFWG will be chaired by the company Treasurer and will consist of members from various departments, including CSR teams from both KHB and Hana Financial Group. This is in line with market practice.
MANAGEMENT OF PROCEEDS
KHB will track the net use of proceeds through a Sustainable Financing Register. The proceeds of the transaction will be deposited in the general funding accounts and earmarked for allocation in the register. Pending allocation, proceeds will be held in accordance with KHB’s general liquidity management policies. This is in line with market practice.
REPORTING
KHB intends to provide a Sustainable Financing Progress Report published within its Investor Relations webpage within one year of issuance, and on an annual basis. The allocation reporting will include the aggregate amount allocated to eligible projects and as per eligible categories, as well as the balance of unallocated proceeds, and impact reporting will include relevant social and environmental metrics. Sustainalytics views KHB’s allocation and impact reporting as aligned with market practice.