The Ministry of Finance and Public Credit (SHCP) foresees that the institutional programs/projects and initiatives identified and negotiated will allow the Nafin Sustainable Fund (FSN) to be capitalized with around 46 million dollars.
On December 9, 2021, Nafin formally established the public management and payment trust identified with number 80776, called FSN.
The FSN is a mechanism that will allow Mexico to receive and channel non-reimbursable resources from International Financial Organizations (OFI) to support programs and institutional projects or initiatives of other dependencies and entities of the Federal Public Administration that contribute to the sustainable development of the country.
Nafin Sustainable Fund
Additionally, the FSN will provide advice on the negotiation of resources, financial management, monitoring of commitments assumed with the OFIs, compliance with the applicable regulations regarding acquisitions and contracting, as well as the policies of the OFIs.
The FSN will seek to consolidate itself as the main vehicle for Mexico to receive non-reimbursable international contributions for the benefit of actions that contribute to the country’s sustainable development.
What is the Nafin Sustainable Fund? A financial mechanism whose objective is to receive and disperse non-reimbursable resources (donations) destined for projects of the Institution, or of other Dependencies and Entities of the Federal Public Administration that contribute to the development of the country, taking advantage of the technical, operational, financial, fiduciary and administrative of Nacional Financiera.
The use of resources is aimed at clean transportation, energy efficiency, renewable energy, sustainable waste management, access to essential services, micro, small and medium enterprises; and women’s empowerment and socioeconomic progress.
Sustainalytics believes that investments in the eligible categories will generate positive environmental or social impacts and advance the United Nations Sustainable Development Goals (SDGs), specifically SDGs 4, 5, 6, 7, 8 and 11.
The process of evaluation and selection of Nafin projects will be supervised by the Deputy Director General (DGA) of Emissions and International Relations.
The final approval of the eligible projects will be the responsibility of the Financial DGA, Corporate Banking and Finance.
The Bank has a robust risk management system applicable to all allocation decisions in line with the Framework.
Sustainalytics believes that this risk assessment and mitigation process is robust, and that the project selection process is in line with market practices.