NADBank leverages its funds by issuing debt in international capital markets or with other financial institutions for the purpose of financing its lending operations or refinancing existing borrowings. Its financial strength is based on its strong liquidity policy, prudent risk management and rigorous lending and oversight processes.
Building on the success of its Green Bond Program NADBank has made strategic enhancements to broaden its scope by developing a more comprehensive Sustainable Financing Framework. This updated framework focuses on addressing the critical development challenges facing the border region, which are at the core of the Bank’s environmental mandate.
Key components of the framework include targeted financing for initiatives in the areas of water and wastewater management, waste solutions, air quality improvements, urban development, sustainable energy projects, sustainable production, climate resiliency and adaptation activities, access to basic services and reduced exposure to air quality hazards. Each funded project is selected for its potential to deliver substantial environmental benefits and/or to improve access to essential services for the population of the border region. Our robust project evaluation and selection process ensures compliance with environmental and social governance standards and our ongoing commitment to transparency and accountability.
S&P Global Ratings has provided an independent second-party opinion of the framework, affirming its alignment with our sustainability objectives and respected international principles and guidelines for green, social and sustainability bonds and loans
To date, NADBank has issued three green bonds totaling US$478 million that have been fully allocated to 16 eligible projects. All proceeds of the green bonds are managed and allocated to infrastructure projects in accordance with the Bank’s NADBank Green Bond Framework, which was first developed in 2018 and updated in 2020. The framework is consistent with the rules established in the Green Bond Principles by the International Capital Market Association and received a positive second party opinion. Further details on the NADBank Green Bond Program can be found in the 2022 Green Bond Report.
NADBank issued its first green bond in July 2018 for CHF 125 million maturing in 2026. The net proceeds from this issue, equivalent to US$126 million, were allocated to six renewable energy projects.
In 2020 NADBank issued two additional green bonds: a CHF 180-million bond maturing in 2028 and a CHF 160-million bond maturing in 2033, equivalent to US$186 and US$166 million, respectively. As of December 2022, all the proceeds from these two issues had been allocated to 15 projects.
Green Bond Program Allocation Summary
Green Bond Issue |
% Allocated |
No. of Projects Supported |
Greenhouse Emissions Avoided
|
CHF 125M maturing 2026 |
100 |
6 |
1,580,609 |
CHF 180M maturing 2028 |
100 |
8 |
1,391,889 |
CHF 160M maturing 2033 |
100 |
8 |
303,935 |
* Six of the 16 projects received allocations from more than one bond.
Renewable energy and energy efficiency made up 91% of the proceeds allocated with US$435 million in total allocations across all three issuances. The remaining 9% was allocated to water-related projects (8%) and a solid waste management project (1%), which came from the issuances maturing in 2028 and 2033.
Allocation by Sector
(USD Million, as of December 2022)
|
Renewable Energy |
Energy Efficiency |
Sustainable Water & Wastewater Management |
Pollution Prevention and Control |
Total Allocation |
CHF 125M maturing 2026 |
$ 126 |
$ – |
$ – |
$ – |
$ 126 |
CHF 180M maturing 2028 |
175 |
– |
11 |
– |
186 |
CHF 160M maturing 2033 |
100 |
34 |
29 |
3 |
166 |
Total |
$ 401 |
$ 34 |
$ 40 |
$ 3 |
$ 478 |
The NADBank 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 & Wastewater Management |
Pollution Prevention and Control |
Renewable Energy |
Energy Efficiency |
|
|
|
|
All projects selected for financing must be certified by the NADBank Board of Directors based on technical, financial and environmental criteria, as well as ensure public access to information. As part of the environmental criteria, the projects must demonstrate not only compliance with applicable environmental regulations and clearance processes but must also demonstrate a positive impact on the environment.
All the proceeds of this bond were allocated in 2018 to six renewable energy projects.
Project |
Sector |
State, Country |
Expected Impacts1GHG emissions avoided
|
Allocation to Bond(USD Million) |
Share of Bond(%) |
Bond Share of Project Costs(%) |
EDPR Wind Farm |
Renewable energy |
Coah., Mexico |
381,424 |
$ 53 |
42 |
15 |
Puerto Libertad Solar Park |
Renewable energy |
Son., Mexico |
440,390 |
34 |
27 |
9 |
El Mezquite Wind Farm |
Renewable energy |
N.L., Mexico |
428,787 |
17 |
14 |
5 |
Santa Maria Solar Park |
Renewable energy |
Chih., Mexico |
161,881 |
10 |
8 |
7 |
Orejana Solar Park |
Renewable energy |
Son., Mexico |
163,808 |
8 |
7 |
7 |
SEPV Imperial Solar Park |
Renewable energy |
CA, USA |
4,319 |
3 |
2 |
18 |
Total |
|
|
1,580,609 |
$ 126 |
100 |
|
1 Estimated impact of entire project at time of approval, based on corresponding project certification document.
CO2 – Carbon dioxide in tons per year, GHG – Greenhouse gases.
All the proceeds of this bond were allocated to seven renewable energy projects and one project related to wastewater treatment. The allocation of this issuance spans two years with seven projects receiving funds in 2020 and an eighth project receiving funds in 2021.
Project |
Sector |
State, Country |
Expected Impacts1 |
Allocation to Bond(USD Million) |
Share of Bond(%) |
Bond Share of Project Costs(%) |
|||
GHG Emissions Avoided
|
Wastewater Treatment Capacity (lps) |
Population Benefitted by Water Services |
|||||||
Don Diego Solar Park |
Renewable energy |
Son., Mexico |
169,443 |
|
|
$ 100 |
54 |
77 |
|
El Mezquite Wind Energy |
Renewable energy |
N.L.., Mexico |
428,787 |
|
|
21 |
11 |
7 |
|
Santa Maria Solar Park |
Renewable energy |
Chih., Mexico |
161,881 |
|
|
17 |
9 |
12 |
|
Orejana Solar Park |
Renewable energy |
Son., Mexico |
163,808 |
|
|
16 |
8 |
13 |
|
Chihuahua WWTPs |
Wastewater treatment |
Chih., Mexico |
9,583 |
2,375 |
809,232 |
11 |
6 |
76 |
|
SEPV Imperial Solar Park |
Renewable energy |
CA, USA |
4,319 |
|
|
5 |
3 |
31 |
|
Puerto Libertad Solar Park |
Renewable energy |
Son., Mexico |
440,390 |
|
|
1 |
1 |
0 |
|
El Centro Solar Park |
Renewable energy |
CA, USA |
13,678 |
14 |
8 |
15 |
|||
Total |
|
|
1,391,889 |
2,375 |
809,232 |
$ 186 |
100 |
|
1 Estimated impact of entire project at time of approval, based on corresponding project certification document.
CO2 – Carbon dioxide in tons per year, GHG – Greenhouse gases, lps – Liters per second, WWTPs – Wastewater treatment plants
Allocation of this issuance was more diverse in terms of project types, including energy storage and efficiency, water and solid waste (pollution prevention and control). By the end of 2020, US$13 million from this issue was allocated to four projects. An additional US$123 million was allocated to three projects during 2021, and US$30 million was designated for one project in 2022, for a total of eight projects funded from this issue.
Project |
Sector |
State, Country |
Expected Impacts1 |
Allocation to Bond(USD Million) |
Share of Bond(%) |
Bond Share of Project Costs(%) |
|||
GHG Emissions Avoided
|
Water Savings
|
Population Benefitted by Water Services |
Solid Waste Management Capacity
|
||||||
Wildcat |
Energy storage |
CA, USA |
819 |
|
|
|
$ 4 |
3 |
100 |
Jim Hogg County |
Drinking water |
TX, USA |
|
43 |
4,558 |
|
4 |
2 |
94 |
Maverick County |
Solid waste |
TX, USA |
|
|
|
130 |
3 |
2 |
73 |
Presidio |
Drinking water |
TX, USA |
|
303 |
4,000 |
|
2 |
1 |
33 |
Corazon Solar Park |
Renewable energy |
TX, USA |
258,338 |
63 |
38 |
23 |
|||
Lower Valley Water District |
Water |
TX, USA |
9,000 |
23 |
14 |
100 |
|||
El Centro Solar Park |
Renewable energy |
CA, USA |
13,678 |
37 |
22 |
39 |
|||
EnerSmart energy storage |
Energy efficiency |
CA, USA |
31,100 |
30 |
18 |
25 |
|||
Total |
|
|
303,935 |
346 |
17,558 |
130 |
$ 166 |
100 |
|
1 Estimated impact of entire project at time of approval, based on corresponding project certification document.
CO2 – Carbon dioxide in tons per year; GHG – Greenhouse gases
Debt Issuance Information Statements |