Sustainable Infrastructure Bonds Issued on Mexican Stock Exchange

The construction of buildings and infrastructure accounts for 29% of energy process-related CO2 emissions, according to the International Energy Agency. In this scenario, the construction sector and infrastructure developers are looking to fund sustainability projects via Sustainability-linked bonds issued at the Mexican Stock Exchange (BMV). 

This week, three companies in the infrastructure and real estate sectors listed sustainable bonds aiming to restructure their debts. The companies that listed bonds were the airport operator Grupo Aeroportuario Centro Norte (OMA), the real estate investment trust Fibra UNO (FUNO) as well as the cement and concrete company CEMEX. 

OMA’s offer was divided into two series, the first of which was OMA 23L for MX$640 million (US$34.8 million) with a term of 3.4 years and a variable interest rate based on the Interbank Equilibrium Interest Rate (TIIE) 28 rate plus 22 basis points. The second issue was OMA 23-2L, issued for MX$2.5 billion (US$139.3 million) with a term of seven years and a fixed annual interest rate of 10.26%. According to OMA, the resources will be focused on sustainable action according to its reference framework for sustainability-related instruments. 

Similarly, FUNO announced it issued sustainable bonds for MX$6.7 billion (US$364.2 million). According to FUNO, 100% of the resources will be destined for prepayment of debt. The first emission was the FUNO 23L bond for MX$4.9 billion (US$266 million) at a fixed interest rate over 10 years and a bono M for 10 years plus 195 base points. The trust also issued FUNO 23-2L for MX$1.7 billion (US$91.88 million) with a variable interest rate over a period of four years and a TIIE rate plus 95 base points. According to FUNO, the bond’s resources will be used to develop, modernize and refurbish its properties to reduce its energy footprint.

CEMEX announced it would issue US$1 billion in sustainable bonds, which will not have a fixed maturity date at an annual rate of over 9.12% subject to CEMEX’s right to differ interest payments. The company said its rates would be adjusted every five years starting from June 2028. According to CEMEX, the obtained resources will be used for projects related to the prevention and control of pollution, renewable energy, energy efficiency, clean transport methods and sustainable water use projects. Of the three issuers, CEMEX is the most direct investment for sustainable-related projects.