Second-Party Opinion Download

Sustainalytics is of the opinion that the Coopeuch Social Financing Framework is credible and impactful and aligns with the four core components of the Social Bond Principles 2021 and the Social Loan Principles 2023. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories – Financial Inclusion and Affordable Housing are aligned with those recognized by the Social Bond Principles and Social Loan Principles that seek to achieve positive socio-economic outcomes for target populations. Sustainalytics considers that investments in the eligible categories will lead to positive social impacts and advance the UN Sustainable Development Goals, specifically, SDG 1, 8, 9, 10 and 11. 

PROJECT EVALUATION AND SELECTION

Coopeuch’s ESG committee will oversee the allocation and selection of eligible projects based on the Framework's criteria. The committee is governed by the General Manager and comprises representatives from Coopeuch’s communications and sustainability, strategic planning, products and marketing and financial divisions. Coopeuch has in place an internal social and environmental risk management system to assess and manage risks associated with eligible projects. Sustainalytics considers the risk management system in place to be adequate and the project evaluation and selection process to be in line with market practice. 

MANAGEMENT OF PROCEEDS

Coopeuch’s financial division will be responsible for the management and allocation of proceeds and will track the proceeds using an internal tracking system. Coopeuch intends to achieve a full allocation of net proceeds within 24 months of issuance and will use a portfolio approach for the management of proceeds. Coopeuch will temporarily hold unallocated proceeds in cash, cash equivalents, or other forms of available liquid securities and investments. In the case of divestment or if a project no longer meets the eligibility criteria, the funds will be reallocated to other eligible projects within 12 months. Sustainalytics considers this to be in line with market practice.

REPORTING

Coopeuch intends to report on allocation of proceeds and corresponding impact on its investor relations website on an annual basis until full allocation. 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, Coopeuch intends to report on relevant impact metrics. Sustainalytics views Coopeuch’s allocation and impact reporting as aligned with market practice.