Project Details
Project
PKO Bank Hipoteczny SA Green Covered Bond Second-Party Opinion
Client
PKO Bank Hipoteczny SA
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Poland
Evaluation Date
Jun 2022
Evaluation Summary
Sustainalytics is of the opinion that the PKO Bank Hipoteczny SA Green Covered Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds, Green Buildings, is aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible category are expected to reduce the carbon footprint of the residential building stock in Poland and advance the UN Sustainable Development Goals, specifically SDG 11.
PROJECT EVALUATION / SELECTION
PKO Bank Hipoteczny SA has established a Green Covered Bond Committee, which is responsible for evaluating and selecting eligible assets in line with the eligibility criteria. The Bank implements group-level processes and policies to ensure that environmental and social risks associated with the eligible projects are identified and mitigated. Sustainalytics considers the risk management system to be adequate and the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
The Green Covered Bond Committee is responsible for the management and allocation of proceeds. The allocation of proceeds will be monitored and tracked using an internal information system. PKO Bank Hipoteczny SA intends to fully allocate the proceeds to eligible assets within two years of issuance. Pending allocation, unallocated proceeds will be temporarily held or invested in the Bank’s liquidity portfolio in money market instruments. This is in line with market practice.
REPORTING
PKO Bank Hipoteczny SA intends to report on the allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting includes information such as the total amount of outstanding proceeds allocated to eligible loans and the amount or the percentage of new financing and refinancing. In addition, PKO Bank Hipoteczny SA is committed to reporting on relevant impact metrics on an annual basis. Sustainalytics views PKO Bank Hipoteczny SA’s allocation and impact reporting commitments as aligned with market practice.