Project Details
Project
Banco La Hipotecaria Social Bonds Framework Second Party Opinion (2021)
Client
Banco La Hipotecaria
Project Type
Social Bond/Loan
Industry Group
Banks
Use of Proceeds
Access to essential services
Location
Panama
Evaluation Date
Oct 2021
Evaluation Summary
Sustainalytics is of the opinion that the Banco La Hipotecaria Social Bonds Framework is credible, impactful and aligns with the Social Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible category for the use of proceeds –Access to Financial Services – is aligned with those recognized by 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 8 and 11.
PROJECT EVALUATION / SELECTION
The Finance Department of Banco La Hipotecaria (the “Bank”) will be responsible for reviewing and selecting assets. The Bank´s internal credit risk management system addresses environmental and social risks associated with the properties to be financed. Sustainalytics considers the risk management systems to be adequate and the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Banco La Hipotecaria’s Finance Department will also be responsible for tracking and monitoring the allocation of proceeds. Proceeds will be immediately allocated to a securitized portfolio of eligible assets at the time of issuance. Sustainalytics considers this to be in line with market practice.
REPORTING
The Bank commits to annual allocation reporting via its Sustainability Report which will be made publicly available on its website. In addition, the Bank intends to report on relevant impact metrics. Sustainalytics views the allocation and impact reporting as aligned with market practice.