Project Details
Project
FONPLATA Sustainable Debt Framework Second Party Opinion (English) (2021)
Client
FONPLATA Development Bank
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Renewable energy; Clean transport; Natural resources/land use management; Pollution prevention and control; Water/waste water management; Access to essential services; Affordable basic infrastructure; Food security; Employment generation;
Location
Bolivia
Evaluation Date
Dec 2021
Evaluation Summary
Sustainalytics is of the opinion that the FONPLATA Sustainable Debt 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 Essential Services, Affordable Basic Infrastructure, Food Security and Sustainable Food Systems, Employment Generation and Socio-economic Advancement, Renewable Energy, Clean Transportation, Environmentally Sustainable Management of Living Natural Resources, Pollution Prevention and Control, and Sustainable Water and Wastewater Management – are aligned with those recognized by the Green Bond Principles, Social Bond Principles, Green Loan Principles, and Social Loan Principles. Sustainalytics considers that investments in the eligible categories are expected to contribute to positive environmental or social impacts and to advance the UN Sustainable Development Goals, specifically SDGs 2, 3, 4, 6, 7, 8, 9, 11, 12 and 15.
PROJECT EVALUATION / SELECTION
The FONPLATA Development Bank’s (“FONPLATA”) internal process for evaluating and selecting projects is overseen by a Sustainability Committee comprised of team members from Finance, Operations, Strategic Partnerships, Risk & Compliance and Legal. The Committee is responsible for the final approval of eligible projects. FONPLATA’s has a dedicated environmental and social risk mitigation process that is applicable to all allocation decisions made under the Framework. Sustainalytics considers this risk assessment and mitigation process to be strong and to be aligned with market best practice. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
FONPLATA’s processes for management of proceeds are overseen by the Sustainability Committee. Pending allocation, proceeds will be managed in accordance with FONPLATA’s conservative treasury investment guidelines. All proceeds will be allocated within 36 months after issuance. This is in line with market practice.
REPORTING
FONPLATA intends to report on the allocation of proceeds on its website and on an annual basis until full allocation. The report will include information such as a breakdown of proceeds by category, geography, and the share and amount of allocated and unallocated proceeds. In addition, FONPLATA is committed to reporting on relevant impact metrics. Sustainalytics views FONPLATA’s allocation and impact reporting as aligned with market practice.