Second-Party Opinion Download

Sustainalytics is of the opinion that the Caja Los Andes Social Financing Framework is credible and impactful and aligns with the four core components of the Social Bond Principles 2021. This assessment is based on the following: 

USE OF PROCEEDS

The eligible categories for the use of proceeds, Access to Financial Services and Access to Financing, are aligned with those recognized by the Social Bond Principles that seek to achieve positive socio-economic outcomes for target populations. Sustainalytics considers that investments in the eligible categories are expected to lead to positive social impacts and advance the UN Sustainable Development Goals, specifically SDGs 8, 9 and 10. 

PROJECT EVALUATION / SELECTION

Caja Los Andes’ Risk and Finance Committee, comprised of directors and senior management, will be responsible for evaluating and selecting eligible social assets. Caja Los Andes has internal processes and policies to address environmental and social risks associated with the financed activities. Sustainalytics considers these processes to be in line with market practice. 

MANAGEMENT OF PROCEEDS

Caja Los Andes’ processes for management and allocation of proceeds is supervised by the Finance Department. Caja Los Andes intends to fully allocate proceeds within 24 months after each issuance. Pending allocation, unallocated proceeds may be temporarily used to refinance outstanding debt or may be invested in cash or cash equivalents or other liquid instruments in accordance with Caja Los Andes’ investment policy. Caja Los Andes has confirmed that the refinanced debt will not be directly associated with carbon intensive sectors. This is in line with market practice. 

REPORTING

Caja Los Andes intends to report on the allocation and impact of proceeds on its website on an annual basis at least until full allocation. The allocation reporting will include category-wide details on the allocation of proceeds, the unallocated amount and the proportion of proceeds used for financing and refinancing. In addition, Caja Los Andes intends to report on relevant quantitative impact metrics where feasible and has provided indicative metrics within the Framework. Sustainalytics views Caja Los Andes’s allocation and impact reporting as aligned with market practice.