The government of Mexico announced on Tuesday an exchange of bonds with maturities between 2041 and 2052 for a new sustainable paper to 2053, the Ministry of Finance said in a statement.
The new bond, for 2,941 million dollarshas a coupon of 6.338% and represents the largest issuance of an ESG bond (Environmental, Social and Corporate Governance) carried out to date. The placement had a maximum demand equivalent to 4.1 times the amount placed and had the participation of more than 300 institutional investors.
“Investors were offered the possibility of exchange their bonds for the new bond maturity in 2053, resulting in an exchange of bonds for about 1,591 million dollars, which translated into a deleveraging of 368 million dollars,” said the SHCP.
This is the ninth sustainable bond issued in the international financial markets during this administration. This latest issuance is the largest ever for an ESG bond.
The Ministry of Finance carried out a liability management operation in international markets. The main objective of this operation was to capture a benefit from the debt reduction of the foreign currency portfolio, by taking advantage of market conditions, in which bonds with maturities between 2041 and 2052 were trading at a considerable discount price.
