Lugos Renewables LLC has successfully finalized its Green Finance Framework. The Framework has been developed in accordance with the ICMA's (International Capital Market Association) Green Bond Principles and the LSTA's (Loan Syndications and Trading Association's) Green Credit Principles standards. Compliance with the standards has been validated and certified by an independent external rating agency, Moody's.
The Framework describes the company's green financing goals in a transparent way. The funds raised through the Framework provide the opportunity to finance renewable energy investments. The green criteria for projects to be eligible for financing under the Framework are set according to domestic and international standards that exceed current market expectations. Several of the green criteria defined in the Framework set expectations in line with the EU Taxonomy, supporting our organisation in meeting the growing international ESG requirements. According to the Framework, our company has established a Green Finance Committee, which is the decision-making body responsible for the allocation of resources in line with the Framework.
Our organisation will publish an annual Allocation and Environmental Impact Report on investments related to sustainable green resource allocation. The report will include the proportion of green investments financed by green bond and loan sources during the reporting period with the environmental impact.
During the validation process, the rating agency assessed the company's sustainability performance in addition to its compliance with the principles of the relevant standards. With respect to the SPO (Second Party Opinion) document, the completed Framework has met all the requirements of the standards, and in many aspects, it meets market best practices. Moody’s has rated our corporation in the SQS2 'Very Good' category, which considers the Framework to have a very high degree of relevance and significance in terms of its contribution to sustainability objectives, in parallel to the expectations of the standard. The rating agency identified several strengths related to our company's profile and objectives that positively support our company's contribution to global goals and to addressing sustainability challenges.
The Green Framework enables numerous new financing opportunities for our company in the green funding environment, which are often combined with favourable market conditions.
For more details on the above, please see our Green Financing Framework and the SPO document at our webpage. The SPO document can be found via the following link as well: www.moodys.com