FONPLATA strengthens its position as a sustainable bank
The Development Bank has published its Sustainable Debt Framework that will support the issuance of green, social, and sustainable debt. This aligns the Bank with the objectives and commitments of the Global Public Agenda and the 2030 Agenda for Sustainable Development of the United Nations.
FONPLATA thus becomes one of the first multilateral banks in Latin America to have a Sustainable Debt Framework aligned with the International Capital Markets Association (ICMA), a more than fifty-year-old organization, which has been highly acknowledged for setting conventions and standards in capital markets.
The publication of FONPLATA's Sustainable Debt Framework takes place in a global context where climate change and environmental and social issues are gaining prominence, as shown by the strong and growing demand for bonds and other specialized debt instruments: 2021 was a record year for sustainable issuance worldwide, doubling the number of sustainable issues compared to 2020.
Currently, Socially Responsible Investors (SRI) not only value the organizations’ good financial performance, but also seek to invest in those whose value proposition clearly includes a positive and responsible environmental and/or social impact.
The funds raised by FONPLATA through sustainable debt securities will be used for green and/or social categories defined in the Sustainable Debt Framework within its Mission and Institutional Strategic Plan, strengthening its position as a sustainable bank.
“FONPLATA not only has provided countercyclical support to its member countries during the COVID-19 pandemic, but it is also showing its firm commitment to environmental and social issues with its updated Institutional Strategic Plan aligned with the Paris Agreement. This Sustainable Debt Framework and the adaptation of its organizational structure focused on sustainability are clear proof of the Bank's decision to promote the funding of green and social projects in its member countries,” said Juan Notaro, Executive President of FONPLATA.
FONPLATA's Framework was developed in partnership with Crédit Agricole CIB as Sustainability Structuring Advisor and submitted to an independent evaluation by Sustainalytics, an international Environmental, Social, and Governance (ESG) rating agency. In its report, Sustainalytics stated that it “is confident that FONPLATA is well positioned to issue sustainable financial instruments and that FONPLATA's Sustainable Debt Framework is sound, transparent, and consistent with the four core components established in 2021: the Green Bond Principles, the Social Bond Principles, the Green Loan Principles, and the Social Loan Principles.”
See more: Sustainable Debt Framework