LONDON & PARIS-- July 28, 2021 -- V.E, part of Moody’s ESG Solutions, published today a Second Party Opinion (SPO) on Colombia’s Sovereign Green Bond Framework and inaugural issuance.

The SPO assesses four main components: the framework’s level of contribution to sustainability, its alignment with international standards, its coherence with Colombia’s strategic sustainability priorities, and Colombia’s environmental, social and governance (ESG) performance.

“Proceeds from the green instruments issued under Colombia’s framework will provide a ‘robust’ contribution to sustainability, the second-highest level on our four-point scale,” said Adriana Cruz Felix, Head of Sustainable Finance Research at V.E. “The issuance will fund projects to protect biodiversity as well as build climate change resilience and adaptation, thereby reinforcing the capacity of Colombia’s institutions to address key environmental challenges.”

In V.E’s opinion, the framework and portfolio of eligible expenditures are aligned with the four core components of the Green Bond Principles 2021 (GBP). The project categories are likely to contribute to eight of the GBP’s eligible green project categories, and eight United Nations Sustainable Development Goals.

The framework is ‘coherent’ with Colombia’s strategic sustainability priorities, the highest level on V.E’s three-point scale. As part of its Pact for Sustainability, Colombia has committed to implement economic strategies around four pillars: sustainability of key sectors, biodiversity and natural capital, climate change adaptation, and environmental institutions and research.

Colombia’s Sovereign Sustainability Rating from V.E is 62/100, which indicates an ‘advanced’ ESG performance, the highest level on V.E’s four-point scale. Colombia ranks 65th out of 178 countries in V.E’s global sovereign sustainability index, and 35th out of 37 OECD countries.

V.E’s SPOs on sustainability credentials help market participants secure financing through sustainable bonds and loans, strengthen issuers’ and projects’ credibility, and give investors confidence. To date, V.E has provided more than 330 SPOs - including award-winning and pioneering missions - on sustainable financing operations in over 30 countries. V.E has provided SPOs for sovereign issuers including the UK, France, Italy, Chile, Ecuador, Egypt, Mexico and Andorra. To learn more, please visit www.moodys.com/sustainable-finance.

V.E’s SPO on Colombia’s Sovereign Green Bond Framework and inaugural issuance is available in Spanish and English.