Project Details
Project
Bancóldex Social Bond Framework - Second-Party Opinion (English)
Client
Bancóldex
Project Type
Social Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Colombia
Evaluation Date
Apr 2018
Evaluation Summary
Sustainalytics is of the opinion that the Bancóldex Social Bond Framework is credible and impactful and aligns with the four core components of the Social Bond Principles 2017.
USE OF PROCEEDS
The eligible use of proceeds category (micro and small enterprise financing and financial inclusion) is aligned with those recognized by the Social Bond Principles that seek to achieve positive socio-economic advancement and empowerment for target populations. Sustainalytics views this use of proceeds category as having positive impact.
PROJECT EVALUATION/SELECTION
The selection of eligible projects and assets will be completed by the bank’s Social Bonds Committee, which will be comprised of members from the treasury and special projects offices and coordinated by the bank’s Financial and Administrative Vice Presidency. This process is in line with market practice. Furthermore, the bank implemented an Environmental and Social Risk Management System (ESMS) to identify and mitigate the environmental and social risks of credit operations. This is in line with market best practice.
MANAGEMENT OF PROCEEDS
Bancóldex has an internal statistical tracking system in place to manage the social bond’s use of proceeds. This is in line with market practice.
REPORTING
Bancóldex intends to report on the allocation of proceeds in an annual report which will be made publicly available and externally verified. Bancóldex is also committed to report on the social impact of projects on an annual basis and will disclose information such as the number of rural and women-owned micro and small enterprises financed. Overall, the bank’s commitment to transparency in allocation and impact reporting is in line with market best practice.