Sustainable Financing Instruments to Boost Local Markets

The Ministry of Finance and Public Credit (SHCP) issued new sustainable financing instruments as part of its Sustainable Financing Strategy, aimed at strengthening the local financial market and promoting environmentally and socially responsible investments.

The issuance involved three tranches: MX$11.6 billion (US$611.8 million) for a two-year term, MX$6.05 billion for a four-year term, and MX$5.28 billion for a six-year term. The respective spreads for these tranches were set at 0.1125%, 0.1945%, and 0.2174%. The offering attracted substantial interest, with 22 domestic investors demanding a total of MX$56.7 billion pesos, which is 3.14 times the amount issued.

This move reflects Mexico's commitment to enhancing its local market and supporting projects that adhere to Environmental, Social, and Governance (ESG) criteria. The issuance is in line with the Federal Public Debt Law and adheres to the debt limits set by the Mexican Congress for fiscal year 2024. It also aligns with the Annual Financing Program, which aims to foster economic and sustainable development in the country.