Second Party
Opinions (SPO)
SPOs are independent assessments that evaluate debt instruments —like green bonds— alignment with market principles and guidelines. SPOs are an important part of Sustainable Fitch's offerings and focus on the Use of Proceeds of a particular issuance, in contrast to a company's overall performance (see ESG Entity ratings). Sustainable Fitch’s SPO allows investors to make informed decisions on an instrument’s ESG profile at the time of issuance.
SPO Spotlight: Republic of Panama
In 2024, Fitch rated Panama’s sustainability finance framework as “excellent” — the highest rating on a scale of excellent, good, aligned and non-aligned. This reinforced confidence among international stakeholders during the issuance process. Panama, the wealthiest Latin American country by GDP per capita (with a population of 4 million), developed this framework in collaboration with entities such as the Inter-American Development Bank (IDB). The framework supports sustainable debt bonds and loans, addressing Panama’s socio-environmental needs over the short, medium and long-term. It is integrated into national strategies, including the State Vision Panama 2030, the Panama 2027 Strategy, the National Climate Change Strategy 2040 and the National Water Security Plan, which also addresses issues related to the Panama Canal.
In 2024, Fitch rated Panama’s sustainability finance framework as "excellent"—the highest rating on a scale of excellent, good, aligned, and non-aligned. This rating was integral to the success of the project, reinforcing confidence among international stakeholders. Panama, the wealthiest Latin American country by GDP per capita with a population of four million, developed this framework in collaboration with entities such as the Inter-American Development Bank (IDB). The framework supports sustainable debt bonds and loans, addressing Panama’s socio-environmental needs over the short, medium, and long term. It is integrated into national strategies, including the State Vision Panama 2030, the Panama 2027 Strategy, the National Climate Change Strategy 2040, and the National Water Security Plan, which also addresses issues related to the Panama Canal.
ESG Use of Proceeds / Projects in Panama Included:
Sustainability: The conservation of the country’s ecosystems and biodiversity – reforestation, climate change capacity building for vulnerable communities, monitoring coral reef communities, control and inspection of illegal fishing and extraction of phantom nets
Social: Financing projects related to the quantity and quality of teachers, the education system, healthcare workers and the health system with with increased hiring, construction
and expansion of sites
Sustainability: The conservation of the country’s ecosystems and biodiversity – reforestation, climate change capacity building for vulnerable communities, monitoring coral reef communities, control and inspection of illegal fishing and extraction of phantom nets.
Social: Financing projects related to the quantity and quality of teachers, the education system, healthcare workers and the health system, with increased hiring, construction and expansion of sites.
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