Second-Party Opinion Download

Sustainalytics is of the opinion that the asset backed Sustainability-Linked Bond issued by M & T Investments Pte. Ltd. and originated by Lion City Rentals align with the Sustainability-Linked Bond Principles 2020. This assessment is based on the following: 

Selection of Key Performance Indicators (KPI)

Lion City Rentals’ Sustainability-Linked Bond identifies one KPI: CO2 emissions intensity of operational fleet (see Table 1). Sustainalytics considers the KPI chosen to be very strong given its materiality to Lion City Rentals’ business operations and high applicability. Sustainalytics further considers that the KPI follows a clear and consistent methodology and can be compared with external science-based contextual benchmarks.  

Calibration of Sustainability Performance Targets (SPTs)

Sustainalytics considers the SPTs to be aligned with Lion City Rentals’ sustainability efforts. Sustainalytics further considers the SPTs to be ambitious based on favourable comparison against peers and alignment with science-based trajectories. 

Bond Characteristics

The Issuer will link the bond’s financial characteristics to the achievement of the SPTs in the form of coupon rate adjustments. Failure to meet each SPT by its observation date will result in a coupon rate step-up. 

Reporting

Lion City Rentals commits to report on an annual basis on its performance on the KPI in its Noteholders’ Report. Lion City Rentals commits to disclose KPI performance including the underlying calculations as well as an annual verification assurance report relative to the SPTs. The reporting commitments are aligned with the Sustainability-Linked Bond Principles.  

Verification

Lion City Rentals commits to have external limited assurance conducted on its KPI progress on an annual basis, which is aligned with market practice.