Project Details
Project
Central American Bank for Economic Integration Green Bond Framework Second-Party Opinion
Client
Central American Bank for Economic Integration (CABEI)
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Honduras
Evaluation Date
Sep 2019
Evaluation Summary
Sustainalytics is of the opinion that the CABEI Green 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 eligible categories for the use of proceeds - (i) Sustainable Land Use, (ii) Renewable Energy, (iii) Sustainable Water Management and (iv) Clean Transport - align with those recognized by the Green Bond Principles 2018. Sustainalytics considers the range of eligible projects will lead to positive environmental impacts and will advance a number of key UN Sustainable Development Goals.
PROJECT EVALUATION/SELECTION
CABEI will establish a Multidisciplinary Green Bond Working Group responsible for the evaluation and selection of Eligible Green Projects which will include cross-departmental representatives. CABEI has developed detailed internal guidelines for project selection that address environmental and social risk management which Sustainalytics considers in line with market best practice.
MANAGEMENT OF PROCEEDS
CABEI will take specific measures to track the invested amounts used, and loans granted. Pending allocation, the net proceeds will be managed within the Bank’s treasury liquidity portfolio, in cash or other liquid instruments. This is in line with market practice.
REPORTING
CABEI intends to report on the allocation of bond proceeds on an annual basis, and for the duration of the green bond(s). The impact reporting will include relevant metrics. These reports will be made publicly available to all stakeholders. Sustainalytics views CABEI’s allocation and impact reporting as aligned with market practice.