Second-Party Opinion Download

Sustainalytics  is  of  the  opinion  that the Banco  de  Chile  Sustainability  Financing Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, Green Loan Principles 2021, and Social Loan Principles 2021. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds –   Socioeconomic Advancement & Empowerment – MSME Financing & Women-Owned Enterprises, Socioeconomic Advancement & Empowerment – Financial Literacy, Access to Basic Infrastructure, Affordable Housing (Social Housing), Energy Efficiency, Renewable Energy, Green Buildings, and Clean Transportation – are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles, and Social Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 1, 7, 8, 9 and 11. 

PROJECT EVALUATION / SELECTION

Banco de Chile’s Sustainability Financing Working Group oversees the evaluation and selection of eligible assets and will also manage social and environmental risks associated with the financed projects. Banco de Chile has adopted internal processes to address these risks. Sustainalytics considers the project selection process in line with market practice.

MANAGEMENT OF PROCEEDS

Banco de Chile’s processes for management of proceeds are overseen by its Treasury Division. Proceeds will be managed on a portfolio basis. Banco de Chile expects to reach full allocation 24 months after issuance. Pending full allocation, unallocated proceeds will be held or invested in cash, cash equivalents or other short-term funding sources. This is in line with market practice.

REPORTING

Banco de Chile will report on the allocation and impact of proceeds on an annual basis until the maturity of the instruments. This may be integrated in Banco de Chile’s annual report or a separate document. Allocation reporting will include net proceeds raised and total amount of funds allocated by category. Impact metrics may include the number of beneficiaries and GHG emissions reduced/avoided (tCO₂e). Sustainalytics views Banco de Chile’s allocation and impact reporting as aligned with market practice.