07 August 2023
BBVA México assists Nafin in its issue and reopening of a Social Bond in two tranches totaling MXN9.02 billion
BBVA México participated as Lead Underwriter in a local market issuance of Nacional Financiera (NAFIN) Notes, a Social Bond totaling MXN9.02 billion, with total demand of MXN15.03 billion.
The deal consisted of two tranches:
- NAFR 23-2S totaling MXN6.02 billion pesos (4.5 billion pesos in the original transaction and MXN1.52 billion pesos in the reopening transaction) at 2.3 years, which was placed at a floating rate of 23 basis points over the TIIE funding rate, in line with the initial price talk (IPT)
- NAFR 23-3S totaling MXN3.0 billion pesos at 3.5 years, which was placed at a floating rate of 26 basis points over the TIIE funding rate, in line with the initial price talk (IPT)
The issue was assigned a credit rating of AAA(mex) by Fitch Ratings, mxAAA by S&P Global and HR AAA by HR Ratings. The proceeds will be used to finance the bank’s lending operations.
The transaction was well received by the market, which allowed a reopening. In the first book, with bids totaling MXN13.5 billion, equivalent to 1.8 times the total amount assigned of MXN 7.5 billion. In the reopening, the total amount bid of MXN1.52 billion pesos was allocated.
NAFIN has been contributing to Mexico’s sustainable development for more than 89 years, during which it has channeled significant funding to micro, small and mid-sized businesses. NAFIN’s first Social Bond was issued in 2017; subsequently, committed to its sustainable strategy and aligned with best international practices, it launched its sustainable website.
BBVA México is grateful to NAFIN for entrusting the execution of this important transaction to us. BBVA is committed to the mobility of ESG resources. We have participated as lead underwriter in more than 57% of the ESG issues placed on the local market.