Second-Party Opinion Download

Sustainalytics is of the opinion that the ProCredit Group Green 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 categories for the use of proceeds - Energy Efficiency, Renewable Energy and Environmentally Friendly Measures - are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 9, 11 and 12.

PROJECT EVALUATION AND SELECTION:
ProCredit’s Business Client Advisers along with the credit committee of the respective banks will be responsible for project evaluation and ProCredit’s Group Sustainability Steering Committee will be responsible for project selection under the Framework. ProCredit has established a multistep environmental and social risk assessment process to monitor and mitigate environmental and social risks commonly associated with the eligible projects. Sustainalytics considers the project selection process in line with market practice.

MANAGEMENT OF PROCEEDS:
ProCredit’s Group Sustainability Steering Committee along with the Group Funding and Group Sustainability Committee will be responsible for management of proceeds. The net proceeds will be managed on a portfolio basis and will be tracked using an internal tracking system. Pending full allocation, ProCredit may temporarily invest unallocated proceeds in cash or cash equivalents or to reimburse or purchase existing debt as per ProCredit’s liquidity policy. Sustainalytics considers this to be in line with market practice.

REPORTING:
ProCredit commits to report on allocation and impact on an annual basis until full allocation, published on the ProCredit Holding’s corporate website. The allocation reporting will include the aggregated amount of net proceeds allocated to each use of proceeds categories and the geographical segment, the number or amount or percentage of new and existing loans (financed and refinanced) and the balance of potentially unallocated net proceeds. Sustainalytics considers this to be in line with market practice.