CABEI Social Bond Framework obtains favorable Second Party Opinion


This instrument will allow CABEI to go to the international capital markets to issue bonds presenting the bank's portfolio of projects related to social issues such as: poverty reduction, employment, social infrastructure, health, housing, among others.

Tegucigalpa, January 15, 2021.- The Central American Bank for Economic Integration (CABEI), a Multilateral Development Bank, which aims to promote integration and economic development as well as the balanced social well-being of the region and since its creation in 1960 has positioned itself at the forefront as the region`s MDB, attracting and financing projects that promote regional, social and economic development and integration.

CABEI succesfully created its Social Bond Framework abiding ICMA Social Bond principles, in turn, CABEI`s Social Bond Framework has received a favorable and solid Second Party Opinion by Sustainalytics,

……..,Sustainalytics believes that the Framework is aligned with the overall sustainability strategy of the bank and that the social use of proceeds categories will contribute to the advancement of the UN Sustainable Development Goals 1,2,3,4,5,6,7,8,11 and 13. Additionally, Sustainalytics is of the opinion that CABEI has adequate measures to identify, manage and mitigate social and environmental risks commonly associated with the eligible projects funded by the use of proceeds. Based on the above, Sustainalytics is confident that CABEI is well-positioned to issue social bonds and that the Social Bond Framework is robust, transparent, and in alignment with the core components of the Social Bond Principles 2020.”

CABEI`s Social Bonds Framework allows it to raise funds in international capital markets that will be oriented to various social sectors in the Central American region. Allocation of proceeds will be directed to finance and refinance projects determined within the eligible categories of the Social Bond Framework, the categories include: access to essential services, affordable basic infrastructure, employment generation, socio-economic empowerment, food security and sustainable agriculture. Through the support of  these categories, CABEI reaffirms its commitment to the the United Nations Sustainable Development Goals.

Exectuive Presidente, Dr. Dante Mossi stated that “the Social Bond framework is aligned with the institutional strategy 2020-2024, which includes human development and social inclusion within its transversal axes. CABEI continues to firmly support its member countries in order to achieve better scenarios in terms of sustainable development and more equitable societies, specially amidst this challenging time”.

On year 2020, In response to the adverse social, economic and enviromental effects of the pandemic and natural disasters in the Central American region, CABEI approved the “Emergency Support and Preparedness Program for COVID-19 and Economic Reactivation" for the amount of US$ 2.36 billion, which consists of 7 components, such as the purchase of vaccines, medical supplies for the Central American region, financing public sector operations, credit to support the liquidity of the central banks of the region, support for SMEs, etc. Similarly, on November 16, 2020, CABEI approved during the summit of presidents of Central America a program to support the region with the amount of US$ 2.5 billion in response to the devastating disasters emergencies caused by ETA and IOTA called “Central American Program for Resilient Reconstruction”.

Dr. Mossi added, “the social development of the Central American region is in the Bank´s core mission and with this Social Bond Framework CABEI will have more market-driven tools to raise necessary and competitive funds to carry out the Programs designed  to address the beneficiary countries needs”.