- The financial design of this bond is unique in its kind as it incorporates a digital approach to safeguard the sustainable criteria associated with the issue. With this issuance, NAFIN contributes to the development of a local market for sustainable instruments by establishing market benchmarks for corporate sustainable financing programs.
- Resources will be allocated to investment projects that promote national and regional economic development, with special emphasis on those that contribute to a balance between social, economic and environmental factors.
- The conditions obtained in this issuance reflect investor’s trust in Nafin, as well as their support for its actions to promote sustainable development through digitization and innovation, in line with the sustainable financing strategy of the Ministry of Finance and Public Credit.
- This issuance is consistent with Nafin's certification as a Green Climate Fund Direct Access Entity.
Mexico’s development bank, Nacional Financiera (Nafin), carried out a successful placement of bank bonds (known in Mexico as Cebures) in three tranches. One for a 3-year note of USD 106 million (2.2 billion Mexican Pesos); a 5-year note of USD 63 million (1.3 billion Mexican Pesos) both at a floating rate as well; and a third tranche of USD 313 Million (6.5 billion Mexican Pesos) at a fixed rate. The 5-year and 10-year bonds were issued in a sustainable format and incorporate a digital approach linked to the protection of sustainable criteria. These are the first sustainable bonds with a digital focus to be issued in Mexico.
The brokerage houses that participated were BBVA Bancomer, Citibanamex and Scotia Inverlat, who expressed their satisfaction with the result of this financial transaction. These bonds received a mx/AAA and HRAAA credit ratings for instruments in the local currency.
The floating rate notes will have 28-day coupons linked to the Interbank Equilibrium Interest Rate (TIIE in Spanish) minus 7 basis points and minus 5 basis points for the 3- and 5-year terms respectively. For the 10-year term, a fixed rate of 7.79% was offered, a level that implied achieving the lowest spread in the local market observed in the history of Mexican development banks for this term.
The conditions obtained in this operation reflect the trust and support of local investors in Nafin’s actions to promote sustainable development through digitization and innovation, in line with the sustainable financing strategy of the Ministry of Finance and Public Credit.
This issuance is consistent with Nafin's accreditation on July 1st 2021, as a Green Climate Fund (GCF) Direct Access Entity.
Nafin is the first Mexican development bank to achieve this. This accreditation allows the bank to access concessional resources to support projects and innovative programs with social and environmental impact, in a first stage for up to 250 million dollars, which contribute to the fulfillment of the international commitments adopted by Mexico within the framework of the Paris Agreement and the United Nations Sustainable Development Goals (SDGs) of the 2030 Agenda.
The United Nations Framework Convention on Climate Change (UNFCCC) created the GCF in 2010. It aims to be the main financing source for climate change adaptation and mitigation activities in developing countries, channeling resources to projects and programs through its accredited entities.
With this achievement, Nafin strengthens its position as a key player in the fight against climate change, the promotion of sustainable development from the financial system and the innovation of market instruments to promote sustainable finance.
It also reinforces its institutional commitment to adopt best practices and international standards, in terms of financing to close social gaps and combat climate change as a bank responsible for sustainable development.
Regarding the allocation of these resources, Nafin will distribute them in sustainable projects that promote domestic and regional economic development, emphasizing those that contribute to an adequate balance between social, economic and environmental factors.
