Investors

From time to time NADB issues debt securities with maturities and terms based on market conditions at the time of sale. The debt securities may be sold to dealers or underwriters, who may resell them in public offerings or otherwise, or they may be sold by the Bank directly or through agents. The terms of the debt securities being offered at a particular time and the manner of their distribution will be described in a prospectus, offering memorandum or supplemental information statement.


Credit Ratings

Fitch Ratings         AA/F1+ stable Credit Report
Moody's Investors Service         Aa1/Prime-1 stable

 

 

Green Bond Program   (Versión en Español)

In June 2018, the North American Development Bank (NADB) issued its first Green Bond in the amount of CHF 125 million (equivalent to USD 126.4 million). The net proceeds from the issuance of this bond will be used to finance or refinance eligible projects that support the Bank's mission to finance environmental infrastructure projects that help preserve, protect, and enhance the environment of the U.S.-Mexico border region to advance the well-being of its residents.

The proceeds of the Green Bond will be used and managed in accordance with the Bank's Green Bond Framework, , which is consistent with the rules established by the International Capital Market Association (ICMA) in the Green Bond Principles. The Green Bond Framework was reviewed by an independent third party, who issued a positive Second-party opinion.


Project Evaluation and Selection

NADB's Green Bond Framework identifies eligible projects that may be financed with the proceeds of green bonds. These projects fall into one of four sectors: sustainable water and wastewater management, pollution prevention and control, renewable energy, and energy efficiency.


All projects selected for financing by NADB must be certified by the Bank's Board of Directors based on technical, financial and environmental criteria, as well as public access to information. As part of the environmental criteria, a project must demonstrate not only compliance with applicable environmental regulations and clearance processes but must also demonstrate a positive impact on the environment.


Use of proceeds

Use of proceeds includes the reimbursement to the Bank of USD $53.06 million for a project funded within 24 months prior to the bond issuance. In addition, proceeds have been used for disbursements made after the bond issuance date. The table below summarizes the use of proceed to date.


2018 Green Bond - Use of proceeds and Anticipated Impact as of September 30, 2018.

Project

Expected Impacts 1

Expected Allocation of Green Bond Proceeds

 

 

 

(USD Million)

Expected Share of Project Costs Covered by Green Bond

 

 

 

(%)

Green Bond Proceeds Disbursed to Date

 

 

 

(USD Million)

Installed Capacity
 

(MW)

Energy Production During First Year of Operation
 

(GWh)

Greenhouse Gas Emissions Avoided

 

(CO2e tons/year)

EDPR
Wind Project, Coahuila

199.5

763

381,424 2

53.06

15.13

53.06

SEPV Imperial Solar Park, California

5

15.1

4,319 2

4.42

26.01

0.89

El Mezquite Wind Project, Nuevo Leon

250

890

428,787 2

17.45

5.53

7.15

Orejana Solar Park, Sonora

125

353.5

205,717 3

8.49

6.11

6.56

Santa María Solar Park, Chihuahua

148

393.6

229,081 3

10.00

6.44

7.50

Puerto Libertad Solar Park, Sonora

317.5

961.55

440,390 3

33.00

8.52

15.15

TOTAL

1,045

3,376

1,689,718

126.42

--

90.31

Remaining Green Bond Funds

36.09

 
1 Expected impact of entire project
2 Estimated emissions were obtained from the Certification Document.
3 Estimated emissions were updated with the current CO2 emission factor (0.582 ton/MWh), published by Mexico's Energy Regulatory Commission in 2017.
The emission factor to calculate emissions at certification was 0.458 ton/MWh.

MW = Megawatts; GWh = gigawatt-hours; CO2e = carbon dioxide equivalent