Project Details
Project
CIFI Green Bond Framework second-party opinion
Client
Corporación Interamericana para el Financiamiento de Infraestructura, S.A.
Project Type
Green Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Panama
Evaluation Date
Jul 2019
Evaluation Summary
Sustainalytics is of the opinion that the CIFI 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 are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that the renewable energy and waste management projects financed by the bond(s) will lead to positive environmental impacts and advance UN Sustainable Development Goals 6, 7, and 11.
PROJECT EVALUATION/SELECTION
CIFI will establish a Green Bond Committee, including representatives from the Financial Team, the ESG Management Unit, and other relevant business lines, which will evaluate projects for compliance with the Framework as well as the Company’s Environmental and Social Due Diligence process and Risk Management approaches. Sustainalytics considers this selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
CIFI will use existing internal controls processes to track and manage the proceeds, including quarterly approval from management. Pending allocation, outstanding funds will be held in cash, cash equivalents, or in CIFI’s liquidity portfolio. This is in line with market practice.
REPORTING
CIFI has committed to allocation and impact reporting, updated quarterly, until full allocation; allocation reporting will be made available at the project level, while impact reporting will include relevant quantitative metrics. In Sustainalytics’ view, this reporting is in line with market best practice.