Mexico places 5 new bonds in the Samurai market for 1.5 billion dollars

Mexico City. Mexico has expanded its global investor base by returning to the Japanese market through the issuance of bonds linked to environmental, social and corporate governance criteria, the Ministry of Finance and Public Credit (SHCP) reported.

In a statement, the agency said it had returned to the Japanese market after two years by placing five new bond references, thereby reaffirming the confidence of international financial markets in the strength of Mexico’s public finances.

The issue was for 152.2 billion yen (equivalent to 1.05 billion dollars) and 46 investors participated, of which 63 percent were regional banks, cooperative insurance companies and Japanese funds. The remaining 37 percent came from other regions.

Between 2022 and 2024, Mexico managed to consolidate the sustainable financing curve in yen, with a total of 10 reference bonds, which positions it as the largest international issuer of sovereign sustainable bonds, only behind the Japanese government.

Mexico currently has a total of 15 benchmark bonds, worth US$11.2 billion, in addition to developing sustainable fixed and variable rate instruments in the local market.

“This achievement reinforces the risk management and currency diversification strategy in the public debt portfolio, taking advantage of favorable financing conditions,” the agency said.

The SHCP highlighted that the operation is aligned with the Sustainable Development Goals (SDG) of the United Nations (UN) and demonstrates the commitment to climate change and social justice.

The five new bonds were issued for terms of 3, 5, 7, 10 and 20 years and will pay coupon rates of 1.43 percent, 1.72, 1.88, 2.27 and 2.93 percent, respectively.

In 2020, the Ministry of Finance launched its Sustainable Financing Mobilization Strategy in the main international markets, including the United States, Europe and Japan.

Based on the reference framework for the issuance of Sovereign Bonds linked to the SDGs, an amount equivalent to the total issued will be allocated to sustainable projects, classified as eligible expenses, in accordance with the Federal Expenditure Budget for the current fiscal year.