Project Details
Project
CMI Energía Green Bond Framework Second-Party Opinion (2021)
Client
Corporación Multi Inversiones
Project Type
Green Bond/Loan
Industry Group
Industrial Conglomerates
Use of Proceeds
Renewable energy
Location
Bermuda
Evaluation Date
Apr 2021
Evaluation Summary
Sustainalytics is of the opinion that the CMI Energía Green Bond Framework is credible and impactful and aligns to 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 – Renewable Energy, Energy Efficiency, Green Buildings, Clean Transportation – are aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals (“SDGs”), specifically SDGs 7 and 11.
PROJECT EVALUATION / SELECTION
CMI Energía’s Finance department will be responsible for the ultimate review and selection of Eligible Green Projects, based on a multi-step assessment process. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
CMI Energía’s treasury team will be responsible for tracking the allocation of bond proceeds to Eligible Green Projects. CMI Energía intends to allocate fully, an amount equal to the net proceeds, as soon as practicable after the time of issuance. The net proceeds will be deposited in CMI Energía‘s treasury accounts or other accounts per the transaction documents. CMI Energía will invest or hold unallocated proceeds in cash or cash equivalents, per its liquidity policy. This is in line with market practice.
REPORTING
CMI Energía intends to provide allocation reporting on its website on an annual basis until full allocation. The allocation reporting is expected to include project-level details on the allocation of proceeds, proportion of financed and refinanced projects, and the balance of unallocated proceeds. For impact reporting, CMI Energía intends to include relevant quantitative impact metrics, and has provided indicative metrics within the Framework. Sustainalytics views CMI Energía’s allocation and impact reporting as aligned with market practice.