Project Details
Project
Banco Compartamos Social Bond Framework Second-Party Opinion (2021)
Client
Banco Compartamos
Project Type
Social Bond/Loan
Industry Group
Other
Use of Proceeds
N/A
Location
Mexico
Evaluation Date
Jul 2020
Evaluation Summary
Sustainalytics is of the opinion that the Banco Compartamos Social Bond Framework aligns with the four core components of the Social Bond Principles 2020. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Employment Generation, Socioeconomic Advancement and Empowerment, and Access to Essential Services – are aligned with those recognized by the Social Bond Principles. Sustainalytics considers that the eligible categories will lead to positive social impacts and advance the UN Sustainable Development Goals, specifically SDGs 8 and 10.
PROJECT EVALUATION / SELECTION
Banco Compartamos’ Executive Committee and the Directors Committee will be in charge of evaluating and selecting Eligible Assets and ensuring compliance with the Framework. Sustainalytics considers this to be in line with market practice.
MANAGEMENT OF PROCEEDS
Banco Compartamos will manage proceeds through a portfolio approach, in which an amount equal to the net proceeds of the social bond will be allocated to Eligible Assets that meet the eligibility criteria. The Bank intends to immediately fully allocate the proceeds to the Eligible Assets portfolio, and its Executive Committee and Finance Department will be in charge of overseeing the allocation process. This is in line with market practice.
REPORTING
Banco Compartamos intends to publish, until full allocation, an Annual Social Bond Report on its website. The allocation reporting will include amounts allocated to each Eligible Assets and a brief description of select assets. In addition, the Bank is committed to reporting relevant impact metrics, where feasible, such as number of beneficiaries, number of first-time loan recipients, number of micro and small business benefited, and number of women owned business benefited. Sustainalytics views Banco Compartamos’ allocation and impact reporting commitments as aligned with market practice.