CABEI Issues MXN 5,000 million Social Bond in Mexico to Boost Social Development Projects

Tegucigalpa, May 24, 2024.- The Central American Bank for Economic Integration (CABEI) issued a social bond for MXN5,000 million (approximately US$299.5 million) in the Mexican capital market. This marks the bank's fifth consecutive social bond issuance, reinforcing its leadership as an ESG issuer after a year in which nearly all its bond issuances were labeled sustainable.

The issuance, rated Aaa.mx and mx.AAA by Moody's and Standard & Poor's respectively, was structured by Casa de Bolsa Banorte S.A. de C.V. and HSBC Casa de Bolsa, S.A. de C.V., with the participation of Grupo Bursátil Mexicano S.A. de C.V., Casa de Bolsa, as a member of the underwriting syndicate, in a two-tranche format: the first tranche for MXN 3,400 million with a term of 3.6 years at a floating rate referenced to the 28-day TIIE and the second tranche with a term of 10 years for MXN1,600 million at a fixed rate referenced to the MBONO34.

The MXN5,000.0 million issuance is CABEI's twenty-eighth in this market, reaching an aggregate amount of over MXN65,000.0 million in issuances. The strong demand from investors resulted in the largest order book in CABEI's history in the Mexican market, reaching MXN 8,263.2 million, surpassing the announced target amount by 1.65 times. Alongside this, the issuance attracted the participation of various investors interested in sustainable instruments with high credit ratings, including investment funds, commercial banks, pension funds, insurance companies, and private banks.

CABEI’s Executive President, Gisela Sánchez, stated: "We are pleased to return to the Mexican market, as it once again demonstrates its trust in our financial strength and our leadership to channel resources for the sustainable and balanced development of the region." Additionally, President Sánchez noted “"the Mexican capital market plays a very important role in CABEI's funding strategy as it provides us with the most competitive financial conditions, which ultimately our borrowing countries."

The funds raised will be used to finance eligible social projects under CABEI's Social Bond Framework to promote social development in the Central American region in line with the Sustainable Development Goals (SDGs). Committed to the ESG framework, since 2019, CABEI has issued sustainable labeled bonds totaling over US$4,800 million in global markets.