Second-Party Opinion Download

Sustainalytics is of the opinion that the Banca Mifel, S.A, Institución de Banca Múltiple, Grupo Financiero Mifel (Mifel) Green Finance Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021 and the Green Loan Principles 2023. This assessment is based on the following: 

USE OF PROCEEDS

The eligible categories for the use of proceeds Sustainable Agriculture and Livestock, Renewable Energy, Energy Efficiency, Sustainable Water and Wastewater Management, are aligned with those recognized by the Green Bond Principles and the Green Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 2, 6 and 7. 

PROJECT EVALUATION AND SELECTION

Mifel’s Prevention and Compliance Department and the ESG Risk Department, will be responsible for evaluating and selecting projects in line with the Framework’s eligibility criteria. Mifel has an environmental and social risk management process in place, overseen by the Prevention and Compliance Department, to address environmental and social risks associated with projects being financed. The Bank is currently updating its identification, assessment and mitigation measures through the implementation of a formal process for risks associated with the financed projects. Sustainalytics considers the project selection process in line with market practice. 

MANAGEMENT OF PROCEEDS

Mifel’s Treasury Department, in coordination with its Operations Department, will oversee the management and allocation of proceeds using a portfolio approach. The Bank has communicated that it will track the proceeds using an internal tracking system and that there will be ongoing matching of proceeds to eligible projects. Mifel intends to allocate proceeds within 36 months of the respective issuance date. Pending full allocation, proceeds will be temporarily held in cash or other liquidities consistent with Mifel’s liquidity policy. This is in line with market practice.

REPORTING

Mifel commits to report on allocation and impact of proceeds in its sustainability report, which will be published on its website on an annual basis until full allocation. Allocation reporting will include the use of funds within each category, total amount of unallocated funds and percentage of funds used for new financing and refinancing. In addition, Mifel intends to report on relevant impact metrics. Sustainalytics views the reporting commitments to be in line with market practice.