BBVA Mexico announced the placement of its first sustainable bond for 10 billion pesos (approximately €470 million). It is the first sustainable bond issued by a privately-owned bank in Mexico, using the TIIE (Interbank Equilibrium Interest Rate) as a benchmark rate.
Demand for this bond transaction was 1.3 times the amount issued, with 35 local investors participating. The order book received extensive participation, notably from brokerage firms/trading desks, investment funds and development banks. Also significant was the participation of privately-onwned banks and insurance companies. The placement received the highest rating from Standard & Poor’s of mxAAA, AAA (mex) from Fitch Ratings and AAA mx from Moody’s.
BBVA Mexico country manager Eduardo Osuna Osuna stressed that: “This sustainable bond in itself is a major milestone as it adheres to our two lines of action: climate action and growth.” He added that the institution is contributing to the development of the sustainable bond market in Mexico, with impact investments in which sustainable development is implicit. BBVA Mexico has competitive strengths that it has attained through constant transformation in order to be the leading sustainable bank in the country.
"The institution is contributing to the development of the sustainable bond market in Mexico, with impact investments in which sustainable development is implicit."
Meanwhile, the CFO of BBVA Mexico, Ignacio de la Luz, said, “Sustainability is one of our strategic priorities at BBVA, and this bond issue contributes to the 2025 Pledge to mobilize €200 billion. Furthermore, it contributes to the development of the local debt market, giving a boost to the new benchmark interest rate, TIIE.” He also indicated that thematic bonds are a growing trend that will become increasingly dominant in financial markets.
"It contributes to the development of the local debt market, giving a boost to the new benchmark interest rate, TIIE de Fondeo”
The resources obtained from the bond issue will be used to finance green and social initiatives, which are considered sustainable. Therefore, it will support the financing of entrepreneurs, microenterprises and households with limited resources to access housing. In addition, BBVA Mexico will continue to promote credit for the purchase of hybrid or electric vehicles, and to offer loans to promote clean, non-polluting energy to corporate clients.
BBVA Mexico’s sustainable bond includes the opinion of DNV (Det Norske Veritas) as an independent third party regarding adherence to the Sustainable Bond Guidelines.
With this bond issue, BBVA Mexico is reinforcing its commitment to continue promoting the growth of green and sustainable investments in the country.