Mexico City issues its first green bond for MXN 1 billion

Mexico City (Source: Expansion) – December 8, 2016.


Mexico City listed its first green bond on the Mexican Stock Exchange (BMV) for an amount of 1,000 million pesos, with a five-year tenor maturing in 2021. The issue was oversubscribed by 2.5 times. With this operation, the Mexican capital became the first sub-national government and the first Latin American city to issue a green bond, the BMV said in a press release. HSBC acted as lead arranger. The proceeds will be used to finance specific projects for climate change mitigation or adaptation; drinking water provision via maintenance, rehabilitation and modernization of  water treatment plants and hydraulic networks projects, and projects for a less polluting public transport such as Metro and Metrobus networks. Mexico City is a recurring issuer on the BMV, and with this operation, it positions itself at the forefront of international markets by financing green infrastructure through this new instrument, the statement said. In March of this year, the Mexican Stock Exchange announced the creation of a bond listing segment, and by the end of 2016 already has green bonds.