Project Details
Project
Entel Sustainable Financing Framework Second-Party Opinion (2021)
Client
Empresa Nacional de Telecomunicaciones S.A.
Project Type
Sustainability Bond/Loan
Industry Group
Telecommunication Services
Use of Proceeds
Access to essential services; Affordable basic infrastructure; COVID-19 Response; Renewable energy; Energy efficiency; Clean transport; Green buildings; Pollution prevention and control;
Location
Chile
Evaluation Date
Sep 2021
Evaluation Summary
Sustainalytics is of the opinion that the Entel Sustainable Financing Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, Green Loan Principles 2021, and Social Loan Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Access to Basic Infrastructure, Access to Essential Services, COVID-19 Pandemic Relief, Renewable Energy, Energy Efficiency, Clean Transportation, Green Buildings, Pollution Prevention and Control – are aligned with those recognized by both the Green Bond Principles, Social Bond Principles, Green Loan Principles, and Social Loan Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 7, 9, 11, and 12.
PROJECT EVALUATION / SELECTION
Entel's Finance, Accounting, Risk Management, Human Resources and Sustainability departments are responsible for selecting eligible projects, with final approval provided by the Company’s Chief Financial Officer. The company’s environmental and social risk management processes are applicable across all allocations made under the Framework. Sustainalytics considers this risk management system to be adequate and the process for project evaluation and selection to be aligned with market practice.
MANAGEMENT OF PROCEEDS
The company’s Finance, Accounting, Human Resources and Sustainability departments are responsible for tracking allocations. Entel has set a lookback period of 24 months prior to issuance for refinancing. Pending allocation, the proceeds may be used for the payment of outstanding debt or capital management activities. This is in line with market practice.
REPORTING
Entel intends to report on allocation of proceeds on its website on an annual basis until full allocation. In addition, Entel is committed to reporting on relevant impact metrics. Sustainalytics views the allocation and impact reporting as aligned with market practice.