Mexico City Issues MX$3 Billion Green Bond to Expand Cablebús

Mexico City returned to the sustainable debt market with the issuance of a MX$3 billion (US$164.9 million) green bond—its largest to date—aimed at financing two new Cablebús lines. The offering, placed on the Mexican Stock Exchange (BMV), received a AAA rating and attracted demand twice the amount offered. According to the Ministry of Finance, the transaction was conducted in compliance with the federal public debt law and within the borrowing approved for 2025.

Mayor Clara Brugada said the proceeds will be used “entirely” to the develop the Álvaro Obregón–Magdalena Contreras–Mixcoac and Milpa Alta–Tláhuac routes, which she described as mobility projects that strengthen territorial equity and provide cleaner air for residents. She noted that the Cablebús system has become a central pillar of the city’s approach to sustainable urban transport, improving connectivity in high-altitude and underserved areas.

“Each peso placed today will translate into cable cars that connect neighborhoods, cleaner air and a better quality of life for thousands of people,” said Edgar Amador, secretary of Finance, who called the operation “the most successful green bond in the city’s history.”

Mexico City pioneered the use of green bonds among Latin American cities in 2016 and has since expanded its financing framework to align with national and international standards, including the Sustainable Taxonomy of Mexico. Juan Pablo de Botton, the city’s finance secretary, said the updated framework is “100% aligned” with federal sustainability criteria and incorporates clear mechanisms for traceability and reporting. He added that the capital’s AAA credit rating reflects a debt profile that has been recognized for sound management.

BMV Chairman Marcos Martínez Gavica highlighted the scale of the transaction and the response from investors. “The green bond placed by Mexico City was for MX$3 billion, with a AAA rating and a demand of two to one. This confirms investor confidence and underlines the relevance of the projects to be financed,” he said.

Green bonds allow governments to raise debt specifically for projects with environmental benefits. In this case, the city designated the entirety of the proceeds to low-emission mobility. Brugada underscored the bond’s purpose: “Every peso will be used to reduce emissions, provide cleaner air and expand one of the city’s most important mobility programs.”

Officials emphasized that the bond supports the continued expansion of the Cablebús, a project initiated under former mayor Claudia Sheinbaum. The system has been credited with reducing emissions, improving travel times and connecting historically isolated areas. An ITDP Mexico study found that Cablebús Lines 1 and 2 were responsible for an 18,569 ton reduction in CO2 emissions between 2021 and 2023.

The issuance also builds on a long relationship between Mexico City and the BMV. In 2003, during the administration of Andrés Manuel López Obrador, the city placed MX$2.5 billion (US$137.42 million) to finance strategic public works.