Green Finance Framework
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 (from 2021) administered by the International Capital Market Association (ICMA) and the Loan Market Association’s administered Green Loan Principles (from 2023), 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 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 framework (dated January 2025), and provide a second-party opinion on the Framework’s environmental credentials and its alignment with the Green Bond Principles 2021 and Green Loan Principles 2023.
Green Financing Framework - January 2025
Second Party Opinion - January 2025
Green Financing Impact Report 2023
Green Financing Impact Report 2022
Green Financing Impact Report 2021
Green Financing Impact Report 2020
Green Financing Framework - February 2020