Green Finance Framework
Dronlytics East Africa's commitment to sustainable financing and environmental impact through responsible green finance instruments.
General
In November 2025, Dronlytics East Africa Ag-Tech Limited ("Dronlytics East Africa") established a green finance framework for eventual listing on the Luxembourg Stock Exchange, and by extension on the Luxembourg Green Exchange under which Dronlytics East Africa may issue bonds, loans and other instruments ("Green Finance Instruments") allocated to finance or refinance new or existing eligible assets and capital and operating expenditures ("Eligible Green Projects"). An amount equal to the net proceeds raised by any Green Finance Instruments will be allocated to new or existing Eligible Green Projects, meeting the respective criteria outlined in this Framework ("Eligibility Criteria") by achieving an environmental benefit.
Use of Proceeds
An amount equal to the net proceeds raised by any Green Finance Instruments will be allocated to new or existing Eligible Green Projects, meeting the respective criteria outlined in this Framework ("Eligibility Criteria") by achieving an environmental benefit. Eligible Green Projects will be located throughout the countries in which Dronlytics East Africa intents to operate (Kenya, Tanzania, Uganda, Rwanda, and Ethiopia).
Eligibility Criteria Categories
The Eligibility Criteria provide for the following categories of Eligible Green Projects:
Green buildings
This category includes the following EU Taxonomy activities: 7.1 (construction of new buildings), 7.2 (renovation of existing buildings), 7.3 (installation, maintenance, and repair of energy efficient equipment), and 7.7 (acquisition and ownership of buildings).
Reduction and stabilization of greenhouse gas concentration in the atmosphere
This category includes the following EU Taxonomy Article: 10 (substantial contribution to climate change migration).
Preventing the deterioration of bodies of water that already have good status
This category includes the following EU Taxonomy Article: 12 (substantial contribution to the sustainable use and protection of water and marine resources).
Converting straw biomass and rice husks into bio-char, bio-oil and bio-gas
This category includes the following EU Taxonomy Article: 13 (substantial contributions to the transition to a circular economy).
Environmental protection from pollution
This category includes the following EU Taxonomy Article: 14 (substantial contribution to pollution prevention and control).
Halting or preventing the degradation of soils and other ecosystems
This category includes the following EU Taxonomy Article: 15 (substantial contribution to the protection and restoration of biodiversity and ecosystems).
Process for Project Evaluation and Selection
Dronlytics East Africa has established a process for the project evaluation and selection of Eligible Green Projects. The introduced Green Finance Committee, chaired by the CEO/CFO and bringing together representatives of all relevant functions within the company, will meet at least on an annual basis.
Green Finance Committee Responsibilities
- Evaluating proposed projects on compliance with the Eligibility Criteria outlined in the Use of Proceeds section
- Allocating an amount equal to the net proceeds of the Green Finance Instruments to Eligible Green Projects
- Monitoring of Eligible Green Projects to which an amount equal to the net proceeds from a Green Finance Instrument have been allocated, to ensure they continue to be aligned with the Eligibility Criteria and reallocate, in case required
- Preparation and validation of the allocation and impact reporting
Management of Proceeds
The net proceeds of the Green Finance Instruments are allocated to Eligible Green Projects following a per instrument allocation approach and in line with the selection and monitoring procedure above. Temporarily unallocated net proceeds from Green Finance Instruments will be managed in accordance with Dronlytics East Africa's liquidity policy. Dronlytics East Africa intends, to the best of its abilities, to fully allocate the proceeds within 24 months after the issuance date of each Green Finance Instrument.
In case an Eligible Green Project no longer meets the Eligibility Criteria as of the time of issuance of the Green Finance Instrument, or in case of divestments of the assets, Dronlytics East Africa will reallocate the net proceeds to other Eligible Green Projects. For the avoidance of doubt, potential future changes to the Eligibility Criteria will not affect the treatment of Green Eligible Projects retroactively.
Reporting
Dronlytics East Africa will report annually until full allocation on the allocation of proceeds and the environmental impact of Eligible Green Projects for each Green Finance Instrument. The report will be published on Dronlytics East Africa's website.
In the case of Green Finance Instruments other than bonds, Dronlytics East Africa may report directly and non-publicly, to the lenders or respective counterparts.
External Review / Second Party Opinion
The Green Finance Framework will be reviewed by an independent second-party assessment (such as, but not exclusive to, Sustainable Fitch Limited) to assess the alignment of the four core components and the recommended external review component of the ICMA Green Bond Principles and the Loan Market Association Green Loan Principles. The Green Finance Framework as well as the second-party opinion will be published on the Dronlytics East Africa website.
Dronlytics East Africa intends to obtain a limited assurance report on the annual allocation reporting of the Green Finance Instrument proceeds to Green Eligible Projects, provided by an external auditor.
Operating Countries
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