Mexico raises $554 million for sustainable bonds in Japan

Mexico City, August 26 (EFE). Mexico became the first Latin American country to issue sustainable bonds in Japan, raising $554 million (about 75.6 billion yen), the Ministry of Finance and Public Credit said Friday. ).

He indicated in a statement that with this measure, the development of its fourth sustainable market began after the issues in euros and peso and the last of them in dollars, with the issuance of 5 new reference bonds in yen with terms of 3, 5, 10, 15 and 20 years.

“The transaction was carried out for a total amount of 75.6 billion yen (about $554 million). The coupon rates for these new bonds were: 1%, 1.25%, 1.83%, 2.28% and 2.52%, respectively,” he added. He said.

The Ministry of Finance confirmed that “this placement of sustainable debt has become the largest ever by any country in the world in the Japanese debt market.”

In addition, he said, this is the first time the government of Mexico has issued 15-year debt in the Japanese market in all history, as well as the first 20-year bond in the said market since April 2018.

In the report, SHCP said that, with this placement, a five-point thematic bond yield curve is built, which will allow state companies to obtain financing from sustainable funds.

“This is the fastest sustainable market development we’ve ever done,” the statement said.

He noted that today’s strong results in terms of amounts and coupons are very important “because it reflects the confidence of Japanese investors in Mexico.”

One example of this, he said, was the participation of the Japan Bank for International Cooperation (JBIC), which took in a total of 10,000 million yen (more than $72 million) during all deadlines.

According to the Sovereign Bond Framework Reference for which this process was carried out and following the guidelines for sustainable bonds published by the International Capital Market Association (ICMA), “an amount equal to the total bond issuance will be allocated to sustainable projects, which are eligible expenditures for the current fiscal year.”

In this way, the memorandum indicated that the Government of Mexico reaffirms its commitment to developing the bond market in accordance with environmental, social and corporate governance (ESG) standards and promoting sustainable financing.

“This deal allows the government of Mexico to continue building a financing system for projects that seek to combat climate change and close social gaps in our country,” he concluded. EFE

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