BBVA Mexico partners up with DHC in issuing its first blue bond
It is the BBVA Group’s first ever blue bond, which are securities used to finance projects geared toward ocean sustainability and the Blue Economy.
BBVA Mexico acted as joint bookrunner in the first issue of a blue bond by Desarrollos Hidráulicos de Cancún (DHC). The Bank underwrote the entire amount, which consisted of a single tranche of floating rate notes with a term of three and a half years and worth approximately MXN 1.4 billion.
In the words of Álvaro Vaqueiro, Head of Corporate & Investment Banking at BBVA Mexico: “We would like to thank DHC for choosing us as joint bookrunner and as their partner in this transaction, which is a further show of our pledge to innovate and support businesses that champion sustainable development in Mexico.”
The proceeds from the issue will go towards projects that contribute to the Sustainable Development Goals (ODS), especially Goals 6 (clean water and sanitation) and 9 (Industry, innovation and infrastructure).
DHC devised its Blue Bond program with the aim of supplying drinking water to local communities in response to population growth and increased demand, protecting natural resources, and creating better water infrastructure.
The bond received a credit rating of HR AA+ HR Ratings I AA+(mex) Fitch Ratings and is a further illustration of the bank’s ongoing efforts to expand its range of Blue Economy products.
Ultimately, the BBVA Group aims to mobilize €300 billion in these endeavors between 2018 and 2025.