Second Party Opinion


BCRA – Credit Rating Agency’s Second Party Opinion is an independent service that offers in-depth opinion on Green, Social and Sustainability Bonds and their respective Frameworks. The opinion is represented as a detailed External Review report which outlines and discusses all major factors surrounding the issuance of a Green, Social or Sustainability Bond. The External Review provides a two-fold advantage by:
  1. Evaluating alignment of Issuer’s Green, Social or Sustainable Bond Frameworks with internationally recognized Green Bond Principles, Social Bond Principles or Sustainability Bond Guidelines. This gives a reference point for Issuers as to whether their Frameworks cover all recommendations and requirements, outlined in said Principles.
  2. Increasing informational transparency and confidence, as well as reducing informational asymmetries for all involved market participants.

We conduct a detailed analysis of the Issuers’ Frameworks which is led by the Green Bond Principles, Social Bond Principles or Sustainability Bond Guidelines. In addition, external factors, that may not be discussed in the Principles, with direct or indirect relationship to Issuers’ environmental and/or social impact are analyzed.

Our vision for the near future is that the currently in development EU Green Bond Standards will become the most important document, concerning the issuance of Green Bonds. Because of that, our analysis is conducted in accordance with the EU Green Bond Standards as well.

The main aspects that are covered in the analysis are how proceeds will be used, what steps are taken for potential project analysis, how will proceeds be managed, how well will eligible projects’ results be presented to other market participants.

We see a good Green, Social or Sustainability Bond analysis as going beyond just Framework alignment. For this reason, we extend our analysis to include factors, representing possible risks involved with the projects’ execution as well as action plans for mitigating these risks. Additionally, we discuss supplemental factors that give other market participants a better understanding of the underlying principles and policies that lead the Issuer’s actions and decisions and that may have a significant impact on the environment or society or both. For example, if adequate, we would analyze an Issuer’s regular business activities (apart from the eligible projects) and discuss their impact on the environment and/or society.

As a complementing factor to the analysis, we also discuss the Issuer’s activities with respect to their alignment with the UN’s Sustainable Development Goals and determine how the eligible projects and/or regular business activities may contribute to these Goals.