Second-Party Opinion Download

Sustainalytics is of the opinion that the Agibank Social Bond Framework is credible and impactful and aligns with the four core components of the Social Bond Principles 2023. This assessment is based on the following: 

USE OF PROCEEDS

The eligible category for the use of proceeds, Access to Essential Services, is aligned with those recognized by the Social Bond Principles that seek to achieve positive socio-economic outcomes for target populations. Sustainalytics considers that investments in the eligible category will lead to positive social impacts and advance the UN Sustainable Development Goals, specifically SDGs 1, 8 and 10.  

PROJECT EVALUATION AND SELECTION

Agibank has communicated to Sustainalytics that its operations are primarily focused on Brazilian National Social Security beneficiaries. The Credit Department is responsible for originating loans with verification of eligibility using federal social security databases and tailoring appropriate loan terms for the vulnerable beneficiary loan applicants. The Credit Committee has the ultimate responsibility to approve the loans regarding Framework eligibility and credit, and for the monitoring process after origination. Agibank has procedures in place to evaluate and monitor environmental and social risks associated with the credit lines financed. Agibank’s procedures also align with international and national standards, such as the International Finance Corporation’s Performance Standards. Sustainalytics considers the project selection process to be in line with market practice. 

MANAGEMENT OF PROCEEDS

Agibank will manage proceeds using a portfolio approach. The Bank’s Treasury Department will be responsible for managing and tracking proceeds prior to allocation. Once allocated, the Bank’s Credit Department will assume responsibility for managing and tracking the proceeds. Both phases of management and tracking will use existing internal systems. Pending full allocation, unallocated proceeds will be held in high-liquidity assets and managed in line with the Bank’s treasury and cash management policies. Sustainalytics considers this to be in line with market practice. 

REPORTING

Agibank will report on the allocation and impact of proceeds on its website annually until full allocation, or longer, if necessary. Allocation reporting will include the total allocated proceeds, the volume of unallocated proceeds and the temporary application of unallocated proceeds. In addition, whenever possible, Agibank will report on qualitative and quantitative social performance indicators. Sustainalytics views Agibank’s allocation and impact reporting to be aligned with market practice.