Second-Party Opinion Download

Sustainalytics is of the opinion that the Banobras Sustainable Bonds with Gender Perspective Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, and Social Bond Principles 2021. This assessment is based on the following:   

USE OF PROCEEDS

The eligible categories for the use of proceeds are aligned with those recognized by both the Green Bond Principles and Social Bond 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 SDG 1, 3, 5, 6, 7, 11, 12, and 16. 

PROJECT EVALUATION / SELECTION

Banobras’ internal process in evaluating and selecting projects is overseen by its Monitoring Unit of the Bond Resources comprised of members from the Treasury, Analysis and Sustainable Strategy and Planning and Evaluation departments. Banobras has a framework to assess environmental and social risks. Sustainalytics encourages the Bank to extend this evaluation to all projects financed to align with market expectation. Sustainalytics considers the process overseen by the Monitoring Unit of the Bond Resources for project evaluation and selection to be in line with market practice.  

MANAGEMENT OF PROCEEDS

Banobras’ Monitoring Unit will track allocation to eligible projects internally following a portfolio approach.  Pending full allocation, unallocated proceeds will be held in liquid instruments issued by the Federal Government, Institute for the Protection of Banking Savings or by national banks. This is in line with market practice. 

REPORTING

Banobras intends to report on allocation of proceeds on its website on an annual basis until full allocation. Allocation reporting will include confirmation that the use of the resources complies with the Framework, the amount of resources assigned to each eligible category, the amount of resources assigned to each eligible category in which a clear gender perspective component is distinguished, the balance of unallocated net resources, items of the impact report, the amount and percentage of resources assigned to refinancing. Additionally, Banobras is committed to reporting on relevant impact metrics. Sustainalytics views Banobras’ allocation and impact reporting as aligned with market practice.