Project Details
Project
Santander Argentina Social Loans Framework Second-Party Opinion
Client
Banco Santander Río S.A.
Project Type
Social Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Argentina
Evaluation Date
Aug 2020
Evaluation Summary
Sustainalytics is of the opinion that the Santander Argentina Social Loans 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:
USE OF PROCEEDS
The eligible categories for the use of proceeds – SMEs Financing and Micro Financing, and Hospitals, clinics and nursing homes financing – are aligned with those recognized by the Social Bond Principles, namely Employment Generation and Access to Essential Services. Sustainalytics considers that providing financing to the eligible categories in response to the effects of the COVID-19 pandemic will lead to positive social impacts and advance the UN Sustainable Development Goals, specifically SDG 3 and 8.
PROJECT EVALUATION/SELECTION
Santander Argentina’s Commercial and Risk Departments, along with the Legal and Compliance Departments, will be in charge of evaluating and selecting social loans and ensure borrowers are in compliance with the Framework criteria and the Bank’s internal guidelines and policies. Sustainalytics considers the approval selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Santander Argentina’s Treasury Department, supported by the Commercial teams, will be responsible for overseeing the disbursement of eligible loans. The Bank will track disbursements using a portfolio approach. In the case that Santander Argentina issues a bond, proceeds will be held according to its liquidity management portfolio. This is in line with market practice.
REPORTING
Santander Argentina intends to report allocation of proceeds in its Annual Report on an annual basis until full allocation. The allocation reporting will include the amount of social loans allocated to each of the eligible categories. In addition, Santander Argentina is committed to reporting on relevant impact metrics such as number of MSMEs financed and number of health and social care providers supported. Sustainalytics views the Bank’s allocation and impact reporting as aligned with market practice.