Project Details
Project
Banco Continental Sustainability Bond Framework Second-Party Opinion
Client
Banco Continental S.A.E.C.A.
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Paraguay
Evaluation Date
Mar 2020
Evaluation Summary
Sustainalytics is of the opinion that the Sustainability Bond Framework is credible, impactful and aligns with the Sustainability Bond Guidelines 2018. This assessment is based on the following:
USE OF PROCEEDS
The green and social categories eligible for the use of proceeds – (i) Energy efficiency, (ii) Green buildings, (iii) Clean transportation, (iv) Environmentally sustainable management of living natural resources and land use, (v) Sustainable water and wastewater management (vi) Renewable energy, (vii) Prevention and contamination control, (viii) Affordable basic infrastructure, (ix) Access to essential services, and (x) Employment generation – are aligned with those recognized by both the Green Bond Principles and Social Bond Principles, respectively. Sustainalytics considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 3, 6, 7, 8, 9, 11, 12 and 15.
PROJECT EVALUATION/SELECTION
Banco Continental will establish a Sustainability Bond Committee, comprised of two board directors, the risk manager, the general manager, the environmental and social risk coordinator and a treasury representative to oversee the selection process of Eligible Projects. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Banco Continental will establish an internal tracking system to monitor and account for net proceeds. Pending allocation, net proceeds will be held temporarily in cash, cash equivalents, or other forms of available short-term funding sources. This is in line with market practice.
REPORTING
Banco Continental intends to publish a Sustainability Bond Report on its website, on an annual basis and until full allocation, containing the amount of net proceeds allocate to each Eligible Project Category, and the outstanding amount of net proceeds yet to be allocated. In addition, Banco Continental is committed to reporting on relevant impact metrics where feasible. Sustainalytics views the Bank’s allocation and impact reporting as aligned with market practice.