BBVA participates with FIRA in the issuance of a Sustainable Fisheries and Aquaculture Bond in the local debt market.

BBVA Mexico, acting as Placement Intermediary, accompanied FIRA in the issuance of MXN7 billion in notes for by the Fondo Especial para Financiamientos Agropecuarios (FEFA). The deal included a Sustainable Fisheries and Aquaculture Bond (Blue), the first of its kind from the public sector in the local debt market, marking a milestone in the development of sustainable finance for the fisheries and aquaculture sector in Mexico. The transaction was organized into three tranches, one of which was a Sustainable Fisheries and Aquaculture Bond (Blue):

• FEFA 24-3 for MXN2.18 billion at 1.5 years, which was placed at a floating rate of 31 basis points over the TIIE, in line with the initial price talk (IPT).

• FEFA 24-4, for MXN 325 million at 2.8 years, placed at a floating rate of 33 basis points over the TIIE funding rate, in line with the initial price talk (IPT).

• FEFA 24B, A Sustainable Fisheries and Aquaculture Bond placed by FEFA, for a total of MXN4.5 billion at 6 years, which was placed at a fixed rate of Mbono plus 43 basis points, a compression of 7 basis points from the initial price talk (IPT).

The issue received a credit rating of mxAAA from S&P and HR AAA from HR. It was well received by the market, with demand totaling MXN14.57 billion, equivalent to 2.9 times FIRA's target of MXN5 billion.

The proceeds of this bond, focusing on fishing and aquaculture in the local market will go to providing financial services and technical support to the fishing industry. The bond is aligned with the Sustainable Development Goals (SDGs) of the UN 2030 agenda, specifically those corresponding to: Zero Hunger, Responsible Production and Consumption and Underwater Life. FIRA's framework identifies three eligibility criteria for fisheries and aquaculture projects, such as responsible aquaculture, low-impact coastal fisheries and sustainable offshore fisheries. Additionally, it received an favorable independent second party opinion from Sustainalytics.

FIRA, a second-tier financial institution with 70 years of history, supports the development of Mexico’s rural, agricultural, forestry and fishing sectors by providing credit, guarantees, training, technical assistance and technology transfer to producers and rural enterprises. Since 2018, FIRA has pioneered the issuance of ESG Bonds, with outstanding issues such as the first Pink Bond (Social Gender Bond) in the local market, the first Green Bond in the world incorporate protected agriculture criteria, and the second resilience-focused Green Bond in the world. Currently, more than 20% of FEFA's current issues are thematic, mobilizing more than 20 billion pesos in Green Bonds. In line with its sustainable commitment and international best practices, the institution launched its sustainable website in 2020.

BBVA Mexico appreciates the trust FIRA has placed in our institution for the execution of this relevant transaction. It also reiterates its commitment to supporting projects that incorporate Environmental, Social and Governance (ESG) criteria. To date, BBVA Mexico has underwritten more than 50% of ESG issues in the local market.