Second-Party Opinion Download

BBVA Bancomer intends to issue a green bond under the Bank’s parent company framework, the BBVA Sustainable Development Goals (SDGs) Bond Framework. Sustainalytics is of the opinion that the BBVA SDGs Bond Framework is credible and impactful, and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The green eligible use of proceeds categories for the BBVA Bancomer Green Bond align with those recognized by the Green Bond Principles and the BBVA SDG Bond Framework. Sustainalytics considers that loans to finance projects related to energy efficiency (including green buildings), renewable energy, sustainable transport, water, and waste management will lead to positive environmental impacts and advance the UN Sustainable Development Goals.

PROJECT EVALUATION/SELECTION

BBVA has established a process whereby any of its subsidiaries’ green bond loans or projects will be analyzed in accordance with the parent company’s Sustainable Finance Working Group. The most appropriate loans will then be selected by the Sustainable Finance and Reputational Risk team and further assessed by the BBVA SDGs Bond Committee. The committee consists of experts from such groups as Responsible Business, Fixed Income Origination, Sustainable Finance and Reputational Risk, Finance, and Global Client Coverage. The final decision on whether a project receives green bond proceeds will rest with the Responsible Business team. In addition, the Bank is a signatory to the Equator Principles. This is in line with market best practice.

MANAGEMENT OF PROCEEDS

BBVA Bancomer and BBVA will track the use of proceeds of its green bond and maintain a buffer of projects beyond the proceeds arising from the green bond issuance to ensure compliance with the use of proceeds. Proceeds are expected to be allocated immediately; if this is not possible the balance of unallocated net proceeds will be held in a liquidity portfolio. This is in line with market practice.

REPORTING

Within 12 months of issuance, and until the relevant maturity date, BBVA Bancomer intends to publish a SDGs Bond Report on its website according to the BBVA SDG Bond Framework, Allocation reporting will be provided at the category level, while impact reporting will include key performance indicators, where possible. In Sustainalytics’ view, reporting on these metrics is in line with market practice; Sustainalytics also encourages post-issuance reviews to ensure ongoing compliance with the criteria of the Framework and positive environmental outcomes.