Second-Party Opinion Download

Sustainalytics is of the opinion that the Yapı Kredi Sustainable Finance Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, Green Loan Principles 2021, and Social Loan Principles 2021. This assessment is based on the following:   

USE OF PROCEEDS

The eligible categories for the use of proceeds – Renewable Energy, Green Buildings, Clean Transportation, Energy Efficiency, Access to Essential Services, and Employment Generation – are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles, and Social Loan Principles. Sustainalytics considers that the provision of financing in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 3, 4, 7, 8, 9 and 11. 

PROJECT EVALUATION / SELECTION

Yapı Kredi’s Sustainable Finance Working Group (the “Group”), comprised of cross-departmental members, will be responsible for the review and approval of the eligible assets in accordance with the eligibility criteria and the Bank’s internal policies. Sustainalytics considers this process in line with market practice. Yapı Kredi has an Environmental and Social Risk Assessment System applicable to all allocation decisions made under the Framework. Sustainalytics considers this risk management system to be adequate, and the project and evaluation process to be in line with market practice.  

MANAGEMENT OF PROCEEDS

The net proceeds will be managed by the Treasury and Sales Departments using a portfolio approach. When necessary, existing assets will be substituted with new eligible assets in the portfolio. Pending allocation, proceeds will be temporarily held in cash or cash equivalents or other liquid marketable instruments. This process is in line with market practice. 

REPORTING

Until full allocation, Yapı Kredi intends to annually report on the allocation and impact of proceeds on its website. Allocation reporting will include, (i) total amount of sustainable finance instruments outstanding, (ii) amount of proceeds allocated to eligible loans, (iii) balance of unallocated proceeds, (iv) share of financing or refinancing, and (v) geographical distribution of the projects. In addition, Yapı Kredi commits to reporting on relevant impact metrics. The process of allocation and impact reporting is aligned with market practice.