NavigatingSustainable FinanceThe Sustainable Finance Technical Assistance team at the Climate Bonds Initiativeprovides comprehensive guidance to prospective debt issuers embarking on theissuance of climate-related labelled bonds and analogous debt instruments. Witha focus on assisting governments, municipalities, national development banks,and corporate entities, the team possesses extensive expertise in facilitating allstakeholders in navigating the intricacies of sustainable finance. Additionally,support is offered to asset owners and managers in formulating investmentmethodologies grounded in scientifically substantiated criteria, aimed at mitigatingthe multifaceted challenges posed by climate change and its repercussions onsociety.
Climate Bonds is a leading standards setter of internationally recognised sector criteria thatare science-based and aligned with a 1.5-degree pathway, while playing a fundamental rolein the development of most global and national taxonomies currently in place.
Furthermore, we are one of the primary database sources for all climate-related themedbond issuances, where we curate, analyse, and review bond issuances. This provides uswith a deep understanding of current market trends and best practices, enabling us to offerguidance on industry-level benchmarking.
This wealth of experience and expertise has been instrumental in advising governments,regulators, and policymakers on effectively promoting sustainability. Our insights andunderstanding of what motivates governments and international investors position ClimateBonds well to collaborate with potential issuers in navigating taxonomies, sustainableprinciples, transition guidance, and sector criteria.

Climate Bonds Initiative Capacity Building and Technical Assistance Services1Our uniqueposition inSustainableFinanceOver 10 years of extensive experience in supporting corporates,banks, multilateral, sovereign, and sub-sovereign entities in LAC,Africa, Central Europe, Central Asia, and ASEAN to raise fundsthrough the use of green and other labelled/sustainability linkeddebt instruments aligned with a 1.5-degree emissions pathwayor the Paris Agreement.

Climate Bonds’ experience in the development ofinternationally recognised and accepted taxonomies andsector criteria underpins our technical assistance approachand methodology.

Climate Bonds’ extensive analysis and review of all climatethemed bond issuances enables the identification of bestpractices and industry benchmarks. Our analysis is showcasedin our climate-themed databases, which are used byinternational index providers and investors.

Climate Bonds’ country and regional programmes, which focuson policy engagement and advocacy, provide clear insight intopolicymakers’ and regulators’ strategies and long-term policyoutlooks.

Climate Bonds Initiative Capacity Building and Technical Assistance Services2How we cansupport youESG readiness for the EntityClimate Bonds works with entities that want to begin transitioning into a low emissions entitybut are uncertain about what is needed to integrate climate considerations into their businessmodel, strategy development, risk management, governance, and financial planning.
We assist organisations in identifying gaps and offer guidance on best practices for making thistransition within your organisation. Furthermore, through our network of delivery partners,we offer guidance to ensure that capital investments not only support climate goals but alsoenhance resilience and promote social inclusion.

Pre-issuance support1Climate aligned bond readiness assessment and action planClimate Bonds works closely with first-time labelled bond issuers to review and analysecurrent operating models, identify gaps, and recommend steps for a successful greenbond transaction. Additionally, Climate Bonds can review the issuer’s projects, selectionprocesses, and systems to track sector allocation and management of the use of proceeds.

2Portfolio assessment and reviewClimate Bonds guides issuers through best practices on how to successfully issue climatealigned debt instruments. We equip you with the knowledge and tools to replicate theprocess for future issuances.

Climate Bonds Initiative Capacity Building and Technical Assistance Services

3Labelled BondsTransition-themed BondsProjects or portfolioassessments are conductedagainst one or more taxonomies,such as Climate Bonds, EU,Chinese, Colombian, etc., and/or principles like ICMA GBP, ICMASBP, MDB, etc., depending onthe issuer’s proposed investorbase.

Given the increasing significanceof transition activities and the roleof Sustainability Linked Bonds(SLB) and Transition Bonds, wecan assist issuers inhard-to-abate sectors inidentifying science-based KeyPerformance Indicators (KPIs)and the most relevant aspectsof robust transition plans andstrategies.

Sub-sovereign & MunicipalityDebt:We assists sub-sovereign and cityauthorities in developing climateaction plans that are alignedwith the authority’s climate andsocial impact commitments andgoals. Subsequently, supportis provided to identify relevantassets and activities that enablethe financing of these climateaction and resilience plans.

3 Strategy, Green and other labelled bond framework reviewClimate Bonds supports the development and review of climate mitigation, adaptation, and socialstrategies, ensuring their accurate reflection in thematic bond frameworks, which is a necessarystep before issuing labelled bonds.
Labelled bond frameworks will be assessed against the ICMA, MDB, and other green or socialprinciples, as well as national/regional taxonomies and Climate Bonds sector criteria.

Climate Bonds Initiative Capacity Building and Technical Assistance Services

4Post-issuance support:4Impact reportingEntities issuing labelled debt instrumentsare often obligated or encouraged to reportannually until the end of the bond term onthe impact and use of proceeds. We provideguidance on best practices and relevantadvice on impact reporting.

65Capacity buildingWe deliver customised and tailoredworkshops for individuals at all levels ofseniority within the client’s organisation.
The aim of these workshops is to enhancea client’s ability to restructure processesand strategies, enabling them to accesssustainable finance in the long term.

Guidance on reviewers and subject matter expertsClimate Bonds has significant experience in understanding the nuances related to debt issuancesand the role each stakeholder plays. We can provide guidance on what to expect from externalreviewers and facilitate conversations with other subject matter experts, for example, on social,governance, risk analysis, and credit review.

7Investor engagementand profilingClimate Bonds has a robust network ofinvestors and other fundraising stakeholderswith whom we can facilitate conversationsto provide insights on market expectations.
Additionally, Climate Bonds can raiseawareness for potential issuances through theimplementation of a communication strategy.

Climate Bonds Initiative Capacity Building and Technical Assistance Services

5Case studyBanco de BogotáGreen bond issuance aligned with Climate Bonds Standard andTaxonomyIn this client engagement, Climate Bonds conducted a portfolio analysis in accordance withClimate Bonds’ taxonomy, and also reviewed and provided feedback on its green bond frameworkto ensure alignment with the best international standards.

After receiving technical assistance from Climate Bonds,Banco de Bogotá issued a green bond in 2020.

COP 300 billion(about USD80.2million)&in a bid to cover 3.04 andtwo tranchesA 3-year tenor that waspriced at a floating rate ofIBR + 1.14%and a five-year tenor priced at4.75% per year.

As part of the support, Climate Bonds has continued close communications with the issuer evenafter the bond issuance to support questions that surge when preparing their annual reports.
This is an inherent part of the technical assistance available to all beneficiaries.

Climate Bonds Initiative Capacity Building and Technical Assistance Services

6“Testimonial“The Climate Bonds team, through their technical assistance service, helped us tounderstand and update our technical knowledge according to the most recent standardsin the market for the issuance of green, social and sustainable financial instruments; inour case, it was very valuable to understand how international standards and ClimateBonds criteria have evolved, as well as to understand and understand more deeply thedevelopment of new taxonomies such as the Colombian green taxonomy.
Their support was key to understanding how our portfolio of current and future fundableprojects could be potentially eligible, according to clear technical criteria, as thematicemissions feedstock to focus resources more efficiently to contribute to climate changemitigation and adaptation and sustainable development in our country.”For more information please contact:technicalassistance@climatebonds.netV080324“- Juan Camilo Galván, Treasury Management, Colombian Development Bank Findeter