Second-Party Opinion Download

Sustainalytics is of the opinion that the Water Wheel Green Securities Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible category for the use of proceeds – Renewable Energy – is aligned with those recognized by the Green Bond Principles. Sustainalytics considers that financing of rooftop solar energy systems will facilitate utilising the full potential of solar energy in the Netherlands, and thus increase access to affordable and clean energy. Financing will also advance UN Sustainable Development Goal 7.

PROJECT EVALUATION/SELECTION

Green Securities Advisory, the financial advisory company within Water Wheel Green Securities, will be responsible for the project evaluation and selection. Selected projects will be developed by the Solar Development Corporation, the project execution entity of Water Wheel Green Securities. On at least a quarterly basis, the Management Team of Water Wheel Green Securities will review and approve allocation of bond proceeds based on eligibility criteria. The process for evaluation and selection is aligned with market practice.

MANAGEMENT OF PROCEEDS

Solar Development Corporation will establish separate entities, a Special Purpose Vehicle (SPV), for each roof where the project will be located. Solar Power Corporation, the mother company of the listed SPVs, will be responsible for the green bond issuance. The net proceeds of the green bonds will be deposited into an individual account. Pending full allocation, the unallocated proceeds will be invested in cash, cash equivalents and/or other liquid marketable instruments by Green Securities Advisory. At least quarterly, selected eligible assets will be reviewed by the Management Team of Water Wheel Green Securities. In case of any material change based on the eligibility criteria, Green Securities Advisory, where feasible, will replace the assets with eligible projects as soon as new rooftop solar options have been identified. This process is in line with market practices.

REPORTING

Until full allocation, Green Securities Advisory intends to publish an annual allocation and impact report on the Water Wheel Green Securities’ website. Allocation reporting will include the amount of allocated proceeds, remaining balance of unallocated proceeds and where feasible, material changes and/or substitution of eligible projects. Impact reporting will include the impact indicators associated with the projects. Green Security Advisory intends to appoint an external auditor to request an annual limited assurance report of the allocation of the bond proceeds. Sustainalytics views this process as in line with best market practice.