Information for Investors

Sustainable Financing Framework

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

Green Bonds

To date, NADBank has issued three green bonds totaling US$478 million that have been fully allocated to 17 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 2023 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 2023, all the proceeds from these two issues had been allocated to 16 projects.

Green Bond Issue	% Allocated	No. of Projects Supported	Greenhouse Emissions Avoided** (CO2 tons/year)
CHF 125M maturing 2026	100	6	1,447,951
CHF 180M maturing 2028	100	8	1,288,084
CHF 160M maturing 2033	100	9	415,391

* Six of the 17 projects received allocations from more than one bond.
** Actual impacts of entire project during first year of operation based on closeout reports, unless otherwise noted.

Renewable energy and energy efficiency made up 91% of the proceeds allocated with US$436 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.

	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	134	29	3	166
Total	$             436	$                   40	$                3	$         478

 

Project Evaluation and Selection

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
Improvements to water systems Improvements to wastewater collection, treatment and reuse systems Water conservation Storm drainage & flood control	Industrial emission reduction (excludes investments in fossil fuel-powered equipment)  Waste treatment & disposal  Site remediation	Wind farms Solar parks	Efficient building and upgrades Efficient industrial equipment retrofits (excludes investments in fossil fuel-powered equipment) Public lighting Electric power distribution systems

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.

Use of proceeds

Green Bond Maturing 2026
CHF125 million, equivalent to US$126 million

All the proceeds of this bond were allocated in 2018 to six renewable energy projects.

Project	Sector	State, Country	Expected Impacts* GHG emissions avoided (CO2 tons / year)	Bond Allocation (USD Million)	Share of Bond (%)	Bond Share of Project Costs (%)
EDPR Wind Farm	Renewable energy	Coah., Mexico	353,929	$          53	42	15
Puerto Libertad Solar Park	Renewable energy	Son., Mexico	418,371	34	27	9
El Mezquite Wind Farm	Renewable energy	N.L., Mexico	367,601	17	14	5
Santa Maria Solar Park	Renewable energy	Chih., Mexico	148,775	10	8	7
Orejana Solar Park	Renewable energy	Son., Mexico	155,178	9	7	7
SEPV Imperial Solar Park	Renewable energy	CA, USA	4,097	3	2	18
Total			1,447,951	$       126	100

*Actual impact of entire project during first year of operation based on closeout reports, unless otherwise noted.
CO₂ – Carbon dioxide in tons per year, GHG – Greenhouse gases.

Green Bond maturing 2028
CHF180 million, equivalent to US$186 million

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 Impacts*				Allocation to Bond (USD Million)	Share of Bond (%)	Bond Share of Project Costs (%)
			GHG Emissions Avoided (CO2 tons/year)	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	367,601				21	11	7
Santa Maria Solar Park	Renewable energy	Chih., Mexico	148,775				18	9	12
Orejana Solar Park	Renewable energy	Son., Mexico	155,178				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	4,097				5	3	31
Puerto Libertad Solar Park	Renewable energy	Son., Mexico	418,371				1	1	0.2
El Centro Solar Park	Renewable energy	CA, USA	13,678				14	8	15
Total			1,288,084	2,375		809,232	$       186	100

* Actual impact of entire project during first year of operation based on closeout reports, unless otherwise noted.
** 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

Green Bond Maturing 2033
CHF 160 million, equivalent to US$166 million

The proceeds of this bond were allocated between 2020 and 2023 to a total of nine projects in the areas of renewable energy and energy efficiency, sustainable water management, and pollution prevention and control.  

Project	Sector	State, Country	Expected Impacts*				Allocation to Bond (USD Million)	Share of Bond (%)	Bond Share of Project Costs (%)
			GHG Emissions Avoided (CO2 tons/year)	Water Savings  (m3/year)	Population Benefitted by Water Services	Solid Waste Management Capacity  (tons/day)
Wildcat energy storage**	Energy efficiency	CA, USA	819				$            1	1	25
Jim Hogg County water project**	Drinking water	TX, USA		43	4,558		4	2	94
Maverick County landfill	Solid waste	TX, USA				130	3	2	78
Presidio water project**	Drinking water	TX, USA		303	4,000		2	1	33
Corazon Solar Park	Renewable energy	TX, USA	258,338				63	38	21
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
Zier Solar Park**	Renewable energy & energy efficiency	TX, USA	186,398				31	19	12
Total			415,391	346	17,558	130	$       166	100

^* Actual impact of entire project during first year of operation based on closeout reports, unless otherwise noted.
** 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