Transitioning to a low carbon, climate change resilient, and environmentally and socially sustainable economy requires vast amounts of capital. By setting up this framework (the “Green Financing Framework”), aligned with the Green Bond Principles published in June 2018 by the International Capital Market Association (ICMA) and the Loan Market Association’s Green Loan Principles published in December 2018, Bonava aims to mobilize debt capital for environmentally sustainable purposes.
Under the Green Financing Framework, Bonava may issue green debt instruments for which the proceeds will target sustainable housing development, aiming to promote positive environmental impacts. Green debt instruments may include Green Bonds or other types of debt financing such as Commercial Papers, loans and Revolving Credit Facilities (RCFs ), and will finance the development and completion of housing units that meet the eligibility criteria set out in the Framework. The eligibility criteria includes buildings constructed according to requirements ensuring a high energy efficiency and a minimum environmental impact throughout the life of the building. The Green Financing Framework also outlines the process used to identify, select and report on eligible assets and the set-up for managing the Green Debt.
Bonava has worked with Danske Bank to develop the Green Financing Framework and Sustainalytics has provided a second opinion to the Green Financing Framework. An independent external auditor will be appointed by Bonava to provide assurance on an annual basis that Green Debt has been allocated to Green Assets.
Second-Party Opinion
Bonava engaged Sustainalytics to review the Bonava Green Financing Framework, dated February, 2020 and provide a second-party opinion on the Framework’s environmental credentials and its alignment with the Green Bond Principles 2018 and Green Loan Principles 2018.