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Second-Party Opinion Download

Project Details


FEFA Social Bond with a Gender Focus Framework Second-Party Opinion (English)


Fondo Especial para Financiamientos Agropecuarios

Project Type

Social Bond/Loan

Industry Group


Use of Proceeds




Evaluation Date

Sep 2020

Evaluation Summary

Sustainalytics is of the opinion that the FEFA Social Bond with a Gender Focus 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:


The eligible category for the use of proceeds – Financing of Credit for Women and Women-led Businesses – is aligned with those recognized by the Social Bond Principles that seek to achieve positive socio-economic outcomes for target populations. Sustainalytics considers that the eligible category will lead to positive social impacts and advance the UN Sustainable Development Goals, specifically SDG 1, 2, 5, 8 and 10.


As a second-tier financial institution, FEFA, through its Business Promotion area, will select projects by screening through its databases including its Comprehensive Computer System of Operations, for compliance with the eligibility requirements. Sustainalytics considers the project selection process in line with market practice.


FEFA’s finance area will be in charge of managing net proceeds. Periodic analysis of the register, containing eligible projects, will be performed to ensure that net proceeds are accurately allocated. Pending allocation, net proceeds will be temporarily invested in accordance with FEFA’s internal liquidity management policy. This is in line with market practice.


FEFA commits to publish an allocation and impact report within a year of each issuance and yearly thereafter until full allocation. Allocation reporting will include (i) total amount of net proceeds from the Gender Bond; (ii) net proceeds allocated to each project category; (iii) total amount of unallocated net proceeds; and (iv) amounts spent in financing vs. refinancing. FEFA also commits to publish impact reports which will include social and/or gender parametric indicators subject to confidentiality agreements. Sustainalytics views FEFA’s allocation and impact reporting as aligned with market practice.