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Information for Investors

NADB 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.

Credit Rating

Fitch Ratings 

AA/F1+ stable

Credit Report

Moody's Investors Service 

Aa1/Prime-1 stable

Credit Report

Green Bonds

In June 2018, NADB issued its first Green Bond in the amount of CHF 125 million (equivalent to US$126.4 million). The net proceeds from this bond were 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 bonds are being managed in accordance with the Bank's Green Bond Framework, which in turn aligns with the Green Bond Principles of the International Capital Market Association (ICMA). 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.

Sustainable Water & Wastewater Management

Pollution Prevention and Control

Renewable Energy

Energy Efficiency

  • Water supply, treatment and distribution
  • Wastewater collection,treatment and reuse
  • Water conservation
  • Storm drainage & flood control
  • Industrial emission reduction
  • Waste treatment &
  • disposal
  • Site remediation
  • Wind
  • Utility-scale solar
  • Distributed solar
  • Municipal and commercial building upgrades
  • Retrofitting
  • Efficiency
  • upgrades

 

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 provide 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 also a positive impact on the environment.

Use of proceeds

All the proceeds of the Green Bond were allocated as of December 31, 2018, which included reimbursement to the Bank of US$53.06 million for a project funded within 24 months prior to the bond issuance, as well as US$73.36 million in loans disbursed to five wind and solar projects located in both countries. The table below summarizes the use of the bond proceeds.

2018 Green Bond 

Use of proceeds and Anticipated Impact as of December 31, 2018

Project

Expected impacts 1

Expected allocated Green Bond proceeds (USD million)

Expected Green Bond Share of Project Cost

(%)

Disbursed Green Bond proceeds to date

(USD million)

Installed capacity (MW)

Energy Production during first year of operation (GWh)

GHG emissions avoided
(CO2 eq 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

3.08

El Mezquite Wind Project, Nuevo Leon

250

890

428,787 2

17.45

5.53

17.45

Orejana Solar Park Project, Sonora

125

353.5

205,717 3

8.49

6.11

8.49

Santa María Solar Park Project, Chihuahua

148

393.6

229,081 3

9.98

6.44

9.98

Puerto Libertad Solar Park Project, Sonora

317.5

961.55

440,390 3

33

8.52

34.36

TOTAL

1,045 3,376 1,689,718 126.42 -- 126.42

Remaining Green Bond Funds.

0

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