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Project Details


Uruguay’s Sovereign Sustainability-Linked Bond Framework Second-Party Opinion (2022 December) (English)


Oriental Republic of Uruguay

Project Type

Sustainability Linked Bond or Note

Industry Group


Use of Proceeds




Evaluation Date

Dec 2022

Evaluation Summary

Sustainalytics is of the opinion that the Uruguay’s Sovereign Sustainability-Linked Bond (SSLB) Framework aligns with the Sustainability-Linked Bond Principles 2020. This assessment is based on the following: 

Selection of Key Performance Indicators

Uruguay’s Sovereign Sustainability-Linked Bond (SSLB) Framework includes two KPIs: Reduction of aggregate gross GHG emissions per real GDP unit with respect to reference year in percentage change, and Native Forest area, % of maintenance with respect to baseline year (see Table 1). Sustainalytics considers the KPIs chosen to be strong.  

Calibration of Sustainability Performance Targets

Sustainalytics considers the SPTs to be aligned with Uruguay’s sustainability strategy. Sustainalytics further considers SPT 1.1 and 1.2 to be ambitious based on their implied improvement against historical performance. Sustainalytics considers SPT 2.1 to be ambitious given its performance against regional countries and SPT 2.2 to be highly ambitious given this target is above historical performance and the performance against regional countries.  

Bond Characteristics

Uruguay has linked the bond’s financial characteristics to the achievement of the SPTs, namely a coupon step-up for a failure to achieve SPTs 1.1 and 2.1, which are in line with its Nationally Determined Contribution (NDC), and a coupon step-down for achieving SPTs 1.2 and 2.2 (over-achievement of the NDC objectives). The achievement or failure to achieve of the respective SPTs will trigger the specified coupon rate changes, as detailed below. 


Uruguay commits to publish official, externally verified reports on an annual basis for KPI 1, and every four years for KPI 2. Interim updates will also be provided for KPI 2 on an annual basis. Reports and updates will be published on Uruguay’s Sovereign Sustainability-Linked Bonds website. Uruguay commits to disclose relevant information that may affect the KPIs. The reporting commitments are aligned with the Sustainability-Linked Bond Principles 2020.  


Uruguay commits to have external assurance conducted by the United Nations Development Program, against each SPT for each KPI at the reporting date, and throughout the lifetime of the bond. This is aligned with the Sustainability-Linked Bond Principles 2020.