Project Details
Project
FEFA Green Bond Framework Second-Party Opinion
Client
Fondo Especial para Financiamientos Agropecuarios (FEFA)
Project Type
Green Bond/Loan
Industry Group
Other
Use of Proceeds
N/A
Location
Mexico
Evaluation Date
Aug 2018
Evaluation Summary
Sustainalytics is of the opinion that the FEFA Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that Environmentally Sustainable Agriculture, Water Efficiency, Energy Efficiency and Renewable Energy projects will lead to positive environmental impacts and advance the UN Sustainable Development Goals.
PROJECT EVALUATION/SELECTION
FEFA’s project selection process is incorporated within its existing credit management system and incorporates the identification of projects by technical units, and a sustainability analysis by the Environmental Departments. This is in line with market practice.
MANAGEMENT OF PROCEEDS
FEFA’s finance department will use its internal accounting and credit management systems to track the green bond proceeds. Unallocated funds will be held in liquid assets, bank accounts of the institution, or temporarily invested in line with FEFA’s liquidity management policy. This is in line with market practice.
REPORTING
FEFA has committed to annual reporting of both allocation information at the category level and impact information, including quantitative KPIs, at the portfolio level. In Sustainalytics’ view, reporting on these metrics is in line with market practice.