Second-Party Opinion Download

Sustainalytics is of the opinion that the CAF 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 category for the use of proceeds (i) Renewable energy, (ii) Clean transportation, (iii) Sustainable management of living natural resources and land use, (iv) Waste management, (v) Water management, (vi) Energy efficiency are aligned with those recognized by the Green Bond Principles 2018. Sustainalytics considers that the eligible projects will contribute to a reduction in the environmental footprint in the countries where CAF operates and issues loans. In addition, Sustainalytics views that the projects will advance UN SDG 6, 7, 11, 14, and 15.

PROJECT EVALUATION/SELECTION

CAF’s process for project evaluation and selection is executed through a dedicated Green Bond Program Team with cross-departmental representation from key areas of the bank such as international bond issuances and climate change, strategic planning, treasury and business project executives. This process is in line with market practices.

MANAGEMENT OF PROCEEDS

CAF has an internal process to monitor and track individual projects composing CAF’s Green Bond portfolio. Pending full allocation, CAF will track and maintain its unallocated proceeds in the company’s general liquidity portfolio and invest them in high grade short-term liquid assets in line with the bank’s liquidity and treasury policy. This process is aligned with market practices.

REPORTING

CAF committed to disclose annual allocation and impact reporting. The (i) allocation reporting will include loan information, allocated amounts to projects or portions allocated. The (ii) impact report will include relevant KPIs tailored for each Eligible Green Project Category. Sustainalytics views the scope and granularity of CAF’s reporting to be in line with market practices.