Guidelines for the issuance of thematic-labelled financial instruments

The IDB Invest, together with the Climate Bonds Initiative (CBI) and the Latin American Stock Exchange (Latinex) based in Panama, published an updated guide aimed at establishing exhaustive criteria that financial instruments must meet in order to obtain green, social, sustainability-linked or other thematic market labels.

The Guide is targeted at companies, financial entities or financing vehicles that issue financial instruments, with a focus on the Panamanian capital market.

Some of the topics covered in the document regarding the process of issuing sustainable financial instruments are: i) use of proceeds; ii) evaluation and selection process of eligible projects; iii) management of proceeds; iv) selection of KPIs; v) calibration of sustainability performance targets (STP); vi) characteristics of sustainability-linked financial instruments; vii) post issuance and impact reporting. In addition, the document includes an annex with a status of the sustainable debt market in Panama and Latin America and the Caribbean with data from the period 2015-2023.