Government of the State of Mexico issues social and sustainable bond

The Government of the State of Mexico (Edomex), through the Ministry of Finance, has announced that for the first time a federal entity in the country issued a social and sustainable bond in the Mexican stock market. The 15-year term bond with annual fixed interest rate of 11.56% was placed for an amount in local currency equivalent to about 145 million dollars.

The objective of the placement is to finance 18 social, sustainable and green projects, of which about 60% of the resources will be allocated to state mobility, urban development and social projects, among which two emblematic works of “Ciudad Mujer” stand out. In addition, the bond will finance two projects that are carried out in collaboration with the Government of Mexico: the expansion of the Mexibús I and the Chalco-Santa Martha Trolleybus. The projects to be financed are aligned with the objectives of the Development Plan of the State of Mexico 2017-2023 and with the Sustainable Development Goals (SDG) of the UN 2030 Agenda.

The bond has a second opinion from Sustainalytics, who confirm that the Sustainable Bond framework provides certainty, has a positive impact and is consistent with the Sustainability Bond guidelines, the Green Bond Principles and also the Principles of the Social Bonds.