The Project consists in the issuance of EUR 300 mln 5-year unsecured green corporate Eurobond issue (the "Green Bond") by MAS Securities BV (the "Issuer"), a limited liability company incorporated in the Netherlands and fully guaranteed by MAS Real Estate Inc. ("MAS" or the "Sponsor"), via a public placement on the Global Exchange Market of Euronext Dublin. This is the first bond issue by the Issuer and Sponsor, with all the proceeds to be used for eligible green commercial real estate assets in countries where the EBRD invests across Central and Eastern Europe. MAS is listed on the Johannesburg Stock Exchange and has a market capitalisation of circa EUR 716 mln as of 7 May 2021. The Green Bond issue is underpinned by a Green Financing Framework aligned with the ICMA Green Bond Principles and LMA Green Loan Principles, which was newly developed and validated by an independent second opinion from Sustainalytics.
The proceeds from the Bond issue will be used for refinancing senior secured asset-level debt for operating CEE portfolio and to fund a pipeline of sustainable commercial real estate assets in CEE.
ETI score: 61
Transition Impact arises from the Green and Well-Governed qualities.
All assets funded by the bond proceeds are set to receive minimum BREEAM Very Good or LEED Gold certifications (or equivalent). Part of the proceeds will also be invested in renewable energy projects and electric vehicle charging points at MAS' properties.
Through the Project, MAS will also align reporting and disclosure standards in relation to its investments and operations through the following actions: (i) publishing a Green Financing Report on an annual basis in relation to the Green Bond; and (ii) enhancing its reporting with the Global Reporting Initiative Standards.
MAS SECURITIES BV
MAS is a real-estate platform focused on retail properties, with investments, through its joint venture with Prime Kapital, in selected residential and mixed-use assets. MAS is listed on the Johannesburg Stock Exchange.
EBRD Finance Summary
Total Project Cost
The EBRD's participation in the issuance will support MAS in its first attempt to tap into the capital market and will provide comfort to other investors. In addition, EBRD's guidance on sustainability and reporting have translated into MAS' commitments to improve further its practices and standards.
Environmental and Social Summary
Categorised B (2019 ESP) with low to medium risk. The project is a capital markets transaction and the Bank's due diligence was limited to publicly available information and an in-house due diligence. Environmental & Social Due Diligence (ESDD) was carried out based on the review of the Sponsor's 2020 Annual Report, the Green Financing Framework document (Feb 2021) and completed ESDD Questionnaire (April 2021). The ESDD showed that the Sponsor has adequate environmental and social risk management capabilities for property acquisition, development and operation and is in compliance with national legislation. The proposed green bond adheres to its Green Financing Framework which is aligned with international benchmarks such as ICMA Green Bond Principles and LMA Green Loan Principles. The Issuer and Sponsor are required to ensure that the project complies with EBRD Performance Requirements as well as to submit an annual environmental report to the Bank. These requirements are incorporated into the Framework Agreement.
Technical Cooperation and Grant Financing
Company Contact Information
MAS Real Estate Inc.
+44 (0)1624 625000
2nd Floor, Clarendon House Victoria Street Douglas, Isle of Man IM1 2LN
PSD last updated
14 May 2021
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
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