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October 4, 2025In force

Executive Agreement 229-2025

Poder Ejecutivo

  • Decree: Ejecutivo-229-2025
  • Published: October 4, 2025
  • Issuing body: Poder Ejecutivo
  • Gazette: 36,958
  • Category: Financial & Tax

Summary

AIThis summary was generated by AI and may contain errors. Always verify against the original law text below. Not legal advice. Learn how we use AI

This agreement creates an inter-ministerial committee to coordinate Honduras' issuance of green, social, and sustainable thematic bonds. The committee, made up of representatives from various government secretariats, will evaluate eligible projects aligned with sustainable development and climate change objectives, and oversee transparency in fund usage and environmental and social impact reporting.

Considerations

Whereas the Constitution of the Republic of Honduras in its article 245, numerals 2), 11), 19) and 30) establishes that the President of the Republic has the general administration of the State; and his attributions are those of directing the general policy of the State and representing it, issuing agreements and decrees and issuing regulations and resolutions in accordance with the law, administering the Public Treasury and directing the economic and financial policy of the State.

Whereas the Constitution of the Republic of Honduras in its articles 247 and 248 establishes that the Secretaries of State are collaborators of the President of the Republic in the orientation, coordination, direction and supervision of the organs and entities of the national public administration, in the area of their competence and that the decrees, regulations, agreements, orders and resolutions of the President of the Republic must be authorized by the Secretaries of State in their respective departments or by the Undersecretaries, as applicable.

Whereas article 11 of the General Law of Public Administration provides that the President of the Republic has the supreme direction and coordination of the Centralized and Decentralized Public Administration. The President of the Republic in the exercise of his functions may act by himself or in Council of Secretaries of State.

Whereas article 12 of the General Law of Public Administration establishes that the President of the Republic has the power to organize his cabinet and for this purpose may assign the responsibilities of coordination and integrate committees or commissions that are required for the development of specific areas and functions.

Whereas article 13 of the General Law of Public Administration establishes that the President of the Republic may create commissions composed of public officials, personalities and representatives of various sectors of national life and national or foreign advisors.

Whereas article 77 of the Organic Law of Budget authorizes the Secretary of State in the Office of Finance to place public debt securities in the capital market directly or through the Central Bank of Honduras.

Whereas numeral 5 of article 82 of the Organic Law of Budget establishes as an attribution of the General Directorate of Public Credit, as the Technical Coordinating Body of the Public Credit Subsystem, a dependency of the Secretary of State in the Office of Finance, the standardization of the procedures for the placement of securities, bonds or obligations of public debt.

Whereas Honduras is a signatory party to the Paris Agreement on climate change and has committed to taking ambitious measures to combat climate change and adapt to its effects, with a clear focus on environmental sustainability, the reduction of greenhouse gas emissions, adaptation to climate change and the conservation of biodiversity, establishing national targets for Nationally Determined Contributions (NDC).

Whereas the General Environmental Law in its article 9, subsection a) has among its objectives to promote an adequate framework that allows for the orientation of agricultural, forestry and industrial activities toward forms of exploitation compatible with the conservation and rational and sustainable use of natural resources and the protection of the environment in general.

Whereas, in the year 2015, the General Assembly of the United Nations Organization (UN) approved the 2030 Agenda for Sustainable Development that seeks to accelerate and deepen efforts to end poverty, improve the quality of life of people, increase access to justice, promote peace and care for the planet. Honduras has taken actions aimed at establishing the conditions to fulfill this commitment, such as the linkage of the Sustainable Development Goals (SDGs) to the strategic objectives of national planning instruments and the establishment of the National Commission for the 2030 Agenda.

Whereas the National Plan for Economic and Social Development includes, among its strategic axes, environmental sustainability and climate change, and establishes the need to mobilize financing for projects that support these axes.

Whereas through Agreement No. 637-2024 dated September 12, 2024 and published in the Official Journal "La Gaceta" on November 18, 2024, the Reference Framework for Green, Social and Sustainable Thematic Bonds of the Republic of Honduras was approved, linked to the Sustainable Development Goals (SDGs), which aims to direct funds toward green and social investments or expenditures that contribute to poverty reduction and the promotion of action on climate.

Whereas for all bonds issued under the Reference Framework for Green, Social and Sustainable Thematic Bonds, and in alignment with the standards and best practices indicated in the Green Bond Principles 2021 (GBP), the Social Bond Principles 2023 (SBP) and the Sustainable Bond Guidelines 2021 (SBG) established by the International Capital Markets Association (ICMA), the Government of Honduras commits to providing investors with a Placement, Association and Performance Report of Eligible Green and Social Expenditures, as well as a Results and Impact Report. The Finance Secretariat (SEFIN) shall publish the reports on its website, one year after issuance and annually thereafter until verification that the net amount received from the issuance is associated.

Whereas it is necessary to establish a framework for interministerial cooperation that allows for effective coordination among the different governmental entities in order to ensure consistency between investments, expenditures, programs and projects eligible in the General Budgets of the Republic with the national priorities of sustainable development and climate change, as well as with the sovereign thematic bonds issued under the Reference Framework for Green, Social and Sustainable Thematic Bonds of the Republic of Honduras; having as its objective to establish strong and continuous interministerial cooperation and coordination, involving all stakeholders in the planning, execution and monitoring of eligible projects, establishing clear criteria and procedures for the selection and association of expenditures, as well as for the reporting of placement, association and performance reports of eligible expenditures and the results and impact reports.

Articles

Article 1.-

CREATION OF THE THEMATIC BONDS CONSULTATION AND SUPPORT COMMITTEE (CCABT). The Thematic Bonds Consultation and Support Committee (CCABT) is hereby created as an instance for intergovernmental coordination and information exchange, with its principal purpose being to provide consultative and technical support to ensure consistency and effective implementation of the program for issuances of Green, Social and Sustainable Thematic Bonds by the Republic of Honduras conducted under its Reference Framework.

Article 2.-

OBJECTIVES OF THE THEMATIC BONDS CONSULTATION AND SUPPORT COMMITTEE (CCABT). The Thematic Bonds Consultation and Support Committee (CCABT) shall have as its objective to provide consultative and technical support in:

  • a)

    The identification of eligible and priority expenditures and projects within the General Budget of the Republic, in accordance with the analysis and review of the priorities of the Government of Honduras taking into consideration the Strategic Government Plan (PEG), the eligibility criteria of the Reference Framework of Green, Social and Sustainable Thematic Bonds of the Republic of Honduras, the Sustainable Development Goals (SDGs), the Nationally Determined Contributions (NDC), and the National Adaptation Plan (PNA), among others.

  • b)

    The evaluation of the criteria for use, management and allocation of funds of the portfolio of investments, expenditures, projects and eligible programs that members have the responsibility to execute.

  • c)

    The preparation of the Placement, Allocation and Performance Reports of Eligible Green and Social Expenditures, as well as the Results and Impact Report.

Article 3.-

COMPOSITION AND MEETINGS OF THE THEMATIC BONDS CONSULTATION AND SUPPORT COMMITTEE (CCABT). The CCABT shall be comprised of one representative from each of the following bodies:

  • a)

    The Secretariat of State in the Office of Finance (SEFIN), which coordinates;

  • b)

    The Secretariat of State in the Offices of Natural Resources and Environment (SERNA);

  • c)

    The National Institute for Forest Conservation and Development, Protected Areas and Wildlife (ICF);

  • d)

    The Secretariat of State in the Office of Energy (SEN);

  • e)

    The Secretariat of State in the Office of Social Development (SEDESOL);

  • f)

    The Secretariat of State in the Office of Strategic Planning (SPE);

  • g)

    Secretariat of State in the Office of Education (SEDUC);

  • h)

    Secretariat of State in the Office of Health (SESAL);

  • i)

    Secretariat of State in the Office of Infrastructure and Transportation (SIT);

  • j)

    The Secretariat of State in the Office of the Presidency; and,

  • k)

    Other Institutions required in the process. The Secretariat of State in the Office of Finance shall convene the institutions that will form part of the CCABT, according to the thematic nature of the bond and the Portfolio of Prioritized Green and Social Eligible Expenditures. Members of the CCABT shall be designated in writing by the heads of the institutions they represent, with authority to make decisions within the scope of the Committee. The designation of the representative of each institution and their replacement must be notified through official communication to the Secretariat of State in the Office of Finance. The CCABT shall meet at least twice per year and when deemed necessary, upon prior convocation by the Secretariat of State in the Office of Finance. Meetings may be conducted in person, by videoconference, and/or in hybrid format. Quorum is reached with more than half of the members convened to integrate the CCABT. Decisions of the CCABT shall be made by absolute majority, with the vote of the Committee members and these shall be expressed in a corresponding record. In case of a tie, the vote of the coordinator shall be decisive. The CCABT may invite to participate in its meetings, without voting rights, representatives of its bodies and other entities, public and private, and experts on the matters at issue.

Article 4.-

FUNCTIONS OF THE THEMATIC BONDS CONSULTATION AND SUPPORT COMMITTEE (CCABT). The CCABT shall have the following functions and responsibilities:

  • a)

    Attend work meeting calls and information requirements related to the management, issuance, monitoring and evaluation of Thematic Bonds in the context of the Reference Framework of Green, Social and Sustainable Thematic Bonds of the Republic of Honduras.

  • b)

    Provide technical support in the preparation of the Reference Framework of Green, Social and Sustainable Thematic Bonds of the Republic of Honduras and its updates, as well as in external review processes, including timely responses to information requirements and inquiries from regulators, auditors, external verifiers, and investors.

  • c)

    Provide technical support and recommendations to ensure the proper implementation of the guidelines established in the Reference Framework of Green, Social and Sustainable Thematic Bonds of the Republic of Honduras.

  • d)

    Evaluate and present recommendations in the process of identifying budgetary expenditures, programs and/or projects that meet the eligibility criteria of the Reference Framework of Green, Social and Sustainable Thematic Bonds of the Republic of Honduras, that are aligned with the sectoral priorities of the Government Plan at the request of the Secretariat of State in the Office of Finance.

  • e)

    Identify the environmental, social and governance risks of eligible programs and/or projects in accordance with the Exclusion List of the Reference Framework of Green, Social and Sustainable Thematic Bonds of the Republic of Honduras, to determine their exclusion and present recommendations for risk management and proposals for substitution of eligible investments and expenditures when necessary.

  • f)

    Provide timely information and indicators required for the preparation of fund allocation and impact reports corresponding to the issuance of thematic bonds, considering the guidelines established in the Reference Framework of Green, Social and Sustainable Thematic Bonds of the Republic of Honduras and requirements of the Secretariat of State in the Office of Finance.

  • g)

    Ensure that the selection of eligible expenditures, projects and programs has a significant and additional contribution to environmental and social sustainability, as well as the alignment of the Reference Framework of Green, Social and Sustainable Thematic Bonds of the Republic of Honduras with international principles and best practices regarding transparency, disclosure and market integrity.

Article 5.-

INFORMATION REQUIREMENTS. The public sector institutions that are executors of resources from Sovereign Bonds aligned with the Reference Framework of Green, Social and Sustainable Thematic Bonds of the Republic of Honduras shall provide to the Secretariat of State in the Office of Finance in a timely manner, all of the following information:

  • a)

    The information necessary for the preparation of the proposal for the Reference Framework of Green, Social and Sustainable Thematic Bonds of the Republic of Honduras, its updates and amendments.

  • b)

    The documents necessary to verify the eligibility of expenditures, projects and eligible budgetary programs.

  • c)

    The methodologies, data series and indicators to be used in the preparation of allocation and impact reports.

  • d)

    Supporting information for the preparation of the Placement, Allocation and Performance Reports of Eligible Green and Social Expenditures, as well as the Results and Impact Report.

  • e)

    Such other information and documents as required for the issuance of thematic sovereign bonds. In particular, the indicators and policies for the management of environmental, social and governance risks that impact the execution of the eligible expenditure portfolio.

Article 6.-

THEMATIC SOVEREIGN BONDS PLACEMENT PROCEDURES. The Secretariat of State in the Office of Finance, within the exercise of its legal powers, shall be responsible for the structuring, issuance and preparation of reports of thematic sovereign bonds in accordance with the criteria established in the Reference Framework of Green, Social and Sustainable Thematic Bonds of the Republic of Honduras. The Secretariat of State in the Office of Finance shall coordinate the work to contract external reviewers to obtain the second party opinion on the Reference Framework of Green, Social and Sustainable Thematic Bonds of the Republic of Honduras, its updates and amendments, and independent external auditors who shall review annually the reports of resource allocation and impact, ensuring that they comply with international standards and in accordance with the Reference Framework of Green, Social and Sustainable Thematic Bonds of the Republic of Honduras.

Article 7.-

TRANSPARENCY OF INFORMATION. The Secretariat of State in the Office of Finance shall be responsible for ensuring that all public information regarding thematic sovereign bonds is published on its official website, thus facilitating transparency and accountability. In particular, the following documents shall be published: a. The Reference Framework of Green, Social and Sustainable Thematic Bonds of the Republic of Honduras, and the Second Party Opinions issued by external verifiers. b. The portfolio of eligible expenditures, investments, programs and projects. c. The annual reports of fund allocation and impact and their respective audits and/or external reviews. d. Other information that SEFIN deems relevant. The Secretariat of State in the Office of Finance shall maintain an open communication channel with investors to keep them informed of the progress of funded projects and other relevant aspects related to the issuances of thematic sovereign bonds.

Article 8.-

SECTORAL TECHNICAL WORKING GROUPS. The Secretariat of State in the Office of Finance, at the request of CCABT members, may convene sectoral technical working groups, in cases where the technical and scientific requirements for the evaluation of green and social expenditures, projects and programs warrant it, or when analyzing the incorporation of new categories of projects and priority sectors for the National Government. The sectoral technical working groups shall provide support to the CCABT in the evaluation of technical aspects related to the sector in question, with the objective of ensuring that the expenditures, projects and programs included in the portfolio meet the eligibility criteria established in the Reference Framework of Green, Social and Sustainable Thematic Bonds of the Republic of Honduras and that the necessary information is available in a timely manner for the issuance of thematic sovereign bonds, the conduct of external reviews, and the preparation and publication of allocation and impact reports to investors. These technical working groups shall be comprised of representatives of the executing units of the expenditures, projects and programs, as well as invited representatives from entities that the Secretariat of State in the Office of Finance deems relevant.

Article 9.-

TREATMENT OF INFORMATION. The members of the CCABT and those invited to its meetings shall follow the directives and guidelines of the Secretariat of State in the Office of Finance, in the treatment of information or statements related to the issuance of thematic sovereign bonds of public debt of the Republic of Honduras.

Article 10.-

ADDITIONAL REQUIREMENTS. For matters not regulated in this Executive Agreement, the Secretariat of State in the Office of Finance may take the corresponding actions to communicate, request or report any information requirement that may be necessary for the proper functioning and performance of the Green, Social and Sustainable Thematic Bonds of the Republic of Honduras, always taking into account what is indicated in the Reference Framework of Green, Social and Sustainable Thematic Bonds of the Republic of Honduras.

Article 11.-

EFFECTIVE DATE. This Executive Agreement shall be effective immediately upon its approval and shall be published in the Official Gazette La Gaceta. Done in the city of Tegucigalpa, municipality of the Central District, on the eighteenth (18) day of the month of June of the year two thousand twenty-five (2025). LET IT BE COMMUNICATED AND PUBLISHED. IRIS XIOMARA CASTRO SARMIENTO CONSTITUTIONAL PRESIDENT OF THE REPUBLIC OF HONDURAS CHRISTIAN DAVID DUARTE CHÁVEZ SECRETARY OF STATE IN THE OFFICE OF FINANCE

Notes

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