Project Details
Project
Peru Sustainable Bond Framework Second-Party Opinion
Client
Republic of Peru
Project Type
Sustainability Bond/Loan
Industry Group
Sovereign
Use of Proceeds
SME finance and microfinance; Socio-economic advancement; Water/waste water management; Renewable energy; Green buildings; Energy efficiency; Clean transport; Natural resources/land use management; Sustainable agriculture; Affordable housing; Access to essential services; Education; Health;
Location
Peru
Evaluation Date
Jul 2021
Evaluation Summary
Sustainalytics is of the opinion that the Peru Sustainable Bond Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, and Social Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds — Support for Vulnerable Groups and People in Vulnerable Situations; Access to Affordable Housing, Education and Essential Health Services; Support for MSMEs and Social Programs to Alleviate and/or Prevent Unemployment; Green Buildings; Renewable Energy; Energy Efficiency; Low Carbon Transport; Resilient and Efficient Water and Wastewater Management; Sustainable Management of Natural Resources, Land Use and Marine Protected Areas; Sustainable Agriculture; and Sustainable Waste Management — are aligned with those recognized by both the Green Bond Principles and Social Bond Principles. Sustainalytics considers that activities in the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDGs 3, 4, 6, 7, 8, 11, and 15.
PROJECT EVALUATION / SELECTION
Peru's internal process in evaluating and selecting projects is integrated into the Government's multi-year investment planning process. The Ministry of Economy and Finance will lead the Governance Structure for Sustainable Bonds to assess projects and will ultimately be responsible for project selection. Peru’s Environmental and Social Risk Mitigation process are applicable to all allocation decisions made under the Framework. Sustainalytics considers the project selection process in line with market practice.
MANAGEMENT OF PROCEEDS
Peru's processes for management of proceeds is carried out by the Ministry of Economy and Finance. Peru's Ministry of Economy and Finance will be in charge of allocating proceeds to eligible projects and intends to reach full allocation at the earliest convenience after issuance. Pending allocation, proceeds will be managed by the General Directorate of the Public Treasury in the Treasury General Account and in accordance with the Government of Peru's regulatory framework and treasury policies. This is in line with market practice.
REPORTING
Peru's Ministry of Economy and Finance will publish allocation and impact reports starting a year after issuance. The allocation report will include information such as a brief description of projects and amounts disbursed. Both reports will be published on the website of the Ministry of Economy and Finance. Sustainalytics views Peru's allocation and impact reporting as aligned with market practice.