Highlights

• Banobras to issue MXN18 billion sustainable bonds maturing in 2033 with a fixed rate.
• Updated sustainable bond framework includes a gender perspective supporting social and environmental projects.
• Previous bond sales include MXN9.2 billion, MXN20 billion, and MXN13 billion in recent Mexican debt market activity.

Mexican development bank Banobras is gearing up to issue up to MXN18 billion ($979 million) in sustainable bonds with a gender perspective at its core, marking its largest sustainable debt sale so far.

The 2033 bonds will carry a fixed interest rate, as mentioned in a recent securities filing.

The deal is scheduled for November 11, with Banorte, HSBC, Monex, Santander, and Scotiabank acting as underwriters. Credit agencies Fitch México and Moody’s Ratings have assigned AAA(mex) and Aaa.mx grades, respectively.

Read More: EBRD and DenizBank Fund Renewable Energy and Green Buildings in Türkiye

Last month, Banobras revised its sustainable bond framework to add a gender perspective that includes green and social financing goals.

According to Fitch Ratings, the proceeds may be channelled to areas such as sustainable water and wastewater management, energy efficiency, affordable public infrastructure, and transport systems designed to cut pollution.

The framework also extends to projects in municipalities and communities with high levels of insecurity and violence against women.

Banobras has been increasing its presence in the local bond market over the past two years. In May 2024, it raised MXN9.2 billion through a partial reopening of a three-part deal and later issued MXN20 billion in another offering.

Also Read: Green Bonds Explained: Definition, Types, Benefits & Risks

In December 2023, it sold MXN13 billion in local bonds, following an earlier MXN10 billion sale of sustainable notes in May 2023.

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Source: Latin Finance