BBVA Mexico reaffirms its commitment to the environment and climate change by issuing its second green bond in the local market, the first issue under the BBVA Group's Sustainable Debt Financing Framework updated in November 2022.
BBVA Mexico announces the successful issuance of bonds on the Mexican Stock Exchange (BMV) for approximately 15 billion pesos in two tranches, the first green with ticker symbol BBVAMX 23V and the second, without the ESG label, with ticker symbol BBVAMX 23. It received the highest credit rating on a national scale from Fitch Ratings and Standard & Poor's, AAA (mex) and mxAAA, respectively.
The issues were very well received by the market, reaching the highest demand obtained with more than 18.7 billion pesos, which represented an oversubscription of 1.26 times, and the participation of institutional investors such as insurance companies, AFORES, investment funds, private banks, and treasury departments, among others. The green tranche was placed for a term of four years with a floating rate of TIIE overnight funding plus 32 bps, while the second tranche closed at a fixed rate of 9.54% for a term of seven years.
Eduardo Osuna Osuna, Vice-Chair and CEO of BBVA Mexico, said: “BBVA Mexico is firmly committed to providing investors, customers and society with solutions that help in the fight against climate change and inclusive growth. By the end of 2022, we will mobilize more than 95 billion pesos in sustainable financing to individuals and companies, being the bank that advises and supports all its customers in strategies that lead to their sustainable transition”.
“By the end of 2022, we will mobilize more than 95 billion pesos in sustainable financing to individuals and companies”
The proceeds of this issuance will be used to finance sustainable transportation, investing in public transport projects that will use electric and other low-carbon vehicles. They will also be allocated to renewable energies through the repowering of nine hydroelectric power plants and to projects related to energy efficiency, by financing the production of hybrid or electric vehicles, with a tailpipe emission intensity of a maximum of 120 g CO2 / km.
Meanwhile, Ignacio de La Luz, Chief Financial Officer of BBVA Mexico, commented, “With this issuance, we reaffirm our commitment to growth and sustainable development, a path we embarked on in 2018 when we made the first green bond issue in the local market, followed in 2022 by our first sustainable bond in 2022, and now, with this new issue, consolidating and strengthening one of our strategic priorities”. He also noted that this will be the first issue under the BBVA Group's Sustainable Debt Financing Framework, updated in November 2022.
The executive said that, in this way, the bank reaffirms its commitment to continue providing innovative solutions to its customers to help them in the transition to a low-carbon economy and promoting sustainable financing.
In 2022, BBVA Mexico mobilized more than 65 billion pesos as an intermediary underwriter of sustainable bonds in the categories of climate change and social action.