Second-Party Opinion Download

Sustainalytics is of the opinion that the OKB Sustainable Financing 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) Pollution Prevention and Control, (iv) Environmentally Sustainable Management of Living Natural Resources and Land Use, (v) Sustainable Water Management, (vi) Clean Transportation, (vii) Climate Change Adaptation, (viii) Promoting Employment Creation, (ix) Access to Essential Services, (x) Basic Infrastructure in Developing Countries, and (xi) Affordable Housing - are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that the eligible projects will lead to positive environmental and social impacts while advancing the UN Sustainable Development Goals.

PROJECT EVALUATION/SELECTION

OKB established a dedicated sustainable bond team, named the Sustainability Team, which consists of cross-departmental representatives from International Relations & Analyses, Client Advisory Export Services, Product Export Services, OeEB (Oesterreichische Entwicklungsbank), Treasury and the Sustainability Manager. The team is responsible for reviewing potential projects on the alignment with the Sustainable Financing Framework. All projects are subject to an environmental and social risk assessment conducted by OKB or OeEB. Sustainalytics views OKB’s internal process for project evaluation and selection to be aligned with market best practice.

MANAGEMENT OF PROCEEDS

The OKB Sustainability Team will manage the net proceeds using a Sustainable Finance Register in which the proceeds of green, social and sustainable bonds will be earmarked for allocation. Pending full allocation, the unallocated proceeds will be invested in working capital financing for SMEs excluding businesses identified in OKB’s SME exclusion list. The Sustainable Financing Register will be reviewed on an ongoing basis to track any material change based on eligibility criteria. Projects that are not aligned with the eligibility criteria will be excluded. This process is in line with market practice.

REPORTING

OKB intends to report to investors annually on the allocation of proceeds on its website. The allocation reporting includes information on the eligible project categories financed including amounts allocated and the region, the remaining balance of unallocated proceeds and the allocated proceeds by type of lending (corporate loans/projects, lending via commercial banks and funds). Regarding the impact report, where available, OKB commits itself to disclosing data on relevant metrics based on each eligibility criterion on an annual basis. OKB also committed to an independent annual review of its reporting which is in line with best practice.