Second-Party Opinion Download

Sustainalytics is of the opinion that the CAF’s Social Bond Framework is credible and impactful and aligns with the four core components of the Social Bond Principles 2020. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds – Healthcare System Support and Emergency Economic Support – are aligned with those recognized by the Social Bond Principles that seek to achieve positive socioeconomic outcomes for target populations. Sustainalytics considers that the eligible categories will lead to positive social impacts and advance the UN Sustainable Development Goals, specifically SDG 3 and 8.

PROJECT EVALUATION/SELECTION

CAF has established a Social Bond Program team, comprised of representatives from the Bank’s international bond issuances, strategic planning, sustainability, treasury and business project executives, to be in charge of selecting projects that are in compliance with the Framework for the inclusion in the social bond. Sustainalytics considers the project selection process in line with market practice.

MANAGEMENT OF PROCEEDS

CAF’s Social Bond Program Team will monitor disbursements made under the Social Bond Program. Pending allocation, net bond proceeds will be managed according to the Bank’s liquidity and treasury policy. This is in line with market practice.

REPORTING

CAF intends to publish a Social Bond Report on its website on an annual basis until full allocation. The report will include allocation reporting and may include (i) the total amount of Eligible Social Expenditures funded through the social bond(s); (ii) a breakdown of Eligible Expenditures per country and by category; and (iii) information about Eligible Expenditures made by shareholder countries via the Emergency Credit Line (if publicly available). In addition, CAF is committed to reporting on relevant impact metrics. Sustainalytics views CAF’s allocation and impact reporting as aligned with market practice.