19 October 2023
BBVA México assists BANCOMEXT in its issuance of an MXN10.78 billion Sustainable Bond
BBVA México participated as Lead Underwriter in a local market issuance by Banco Nacional de Comercio Exterior (Bancomext), consisting of MXN10.78 billion in Sustainable Bonds, in which total demand rose to MXN13.70 billion.
The deal consisted of two tranches:
- BACMEX 23-3X for MXN4.83 billion at 3 years, placed at a floating rate of 25 basis points above the TIIE funding rate, in line with the initial price talk (IPT).
- BACMEX 23-4X for MXN5.95 billion at 10 years, placed at a fixed rate equivalent to 43 basis points above the MBono 33 (9.98%), resulting in an annual coupon rate of 10.41%, in line with the Initial Price Talk (IPT).
The issue received a credit rating of AAA(mex) from Fitch Ratings and AAA.mx from Moody’s Local México. The proceeds will be used to finance lending activity by the bank. The market welcomed the issuance with demand totalingMXN13.70 billion, which was 1.82 times the target amount of MXN7.50 billion set by Bancomext.
Bancomext has been supporting Mexico’s economic development for the past 85 years by funding foreign trade through financing, guarantees and other specialized financial services.
Bancomext developed a Sustainable Bond framework in order to finance projects with social and environmental impact. This framework is aligned with and supports 12 of the 17 Sustainable Development Goals (SDGs). Additionally, in 2016 it created an Environmental and Social Risk Management System for the purpose of identifying, overseeing and managing potential environmental and social impacts within the lending process.
BBVA México is grateful to Bancomext for entrusting to us execution of this important transaction and we reiterate our commitment to the mobility of resources for the promotion of ESG projects. To date, we have participated as lead underwriter in more than 28% of ESG issues on the local market.