Hacienda issues for the first time a ‘green bond’ for 750 million euros to finance sustainable projects

Given the growing demand for financial instruments by investors seeking new types of assets, the Ministry of Finance and Public Credit (SHCP) issued, for the first time, a sovereign green bond for 750 million euros to finance sustainable projects linked to the development goals of the United Nations (UN).

The Treasury indicated this afternoon that Mexico becomes the first country to issue a sustainable sovereign bond linked to the UN Sustainable Development Goals (SDGs), with which the country begins its sustainable financing program by joining this type of financial instruments .

The bond was placed for a 7-year term maturing in September 2027, offering a yield to maturity of 1,603 percent and paying a coupon rate of 1,350 percent, the second-lowest coupon in the entire history of the bonds. in euros issued by the Federal Government.

The operation started at 2:00 a.m. and concluded at 8:00 a.m. this Monday, reached a maximum demand of 4.8 billion euros, equivalent to 6.4 times the amount placed, and had the participation of 267 institutional investors globally.

In a video via Twitter account, Gabriel Yorio, Undersecretary of Finance, pointed out that this type of bond is acquired by investors who are highly committed to sustainable development policies.

In this sense, he indicated that there are currently around 3,000 sustainable investment funds that concentrate assets for 800 billion dollars around the world, while the European market concentrates 80 percent of these assets.

“This is the first time that Mexico has accessed this type of investment fund. With the issuance of the sustainable bond, the country has access for the first time to this new profile of investors aligned with the policies that countries have to reduce inequality and promote financial inclusion and reduce gender gaps ”, he stated.

The Treasury clarified that the sovereign green bond, whose planning began in February 2020, is within the margins authorized by Congress in the Annual Financing Program, “so it does not represent additional debt to that authorized. The resources will be used for the general financing of the budget aligned with the 2030 Agenda and the SDGs ”.

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