CABEI promotes sustainable projects through a new social bond placement for MXN5,000 million
• CABEI is positioned as the leading multilateral issuer of social bonds in the Mexican market.
• All of CABEI's emissions in 2023 have been sustainable, and will make it possible to finance social and climate projects for the integral development of the region.
Tegucigalpa, September 28th, 2023.The Central American Bank for Economic Integration (CABEI) reopened a social bond for 5,000.0 million Mexican pesos (MXN), equivalent to US$290.1 million, in the Mexican capital market, making it the fourth consecutive issuance of social bonds in Mexico and the eighth with a sustainable label so far this year.
The placement of blue and social bonds at the global level has reached an aggregate amount of US$2,146.3 million in 2023, with special support and participation from Mexican investors whose investments of MXN10,000.0 million (US$575.0 million) represent 27% of the funding obtained by CABEI so far this year, and represent a record annual issuance for the Bank in this important market.
The issuance, which received local ratings of Aaa.mx and mx.AAA by Moody's and Standard & Poor's, was structured in two (2) segments in order to meet the demand of different types of investors who have an appetite for highly rated sustainable instruments.
The reopening of the first tranche presented a 3.4-year floating rate term and the second tranche a 9.7-year fixed rate term, both with Casa de Bolsa Banorte S.A. de C.V. and HSBC Casa de Bolsa, S.A. de C.V. In this regard, it is important to highlight CABEI's debut with Casa de Bolsa Banorte S.A de C.V. as placement agent, which demonstrates the Bank's consolidated presence in the Mexican securities market and its strong ties with its different stakeholders.
The MXN5,000.0 million issuance is CABEI's twenty-seventh in this market, reaching a historical issuance amount of more than MXN60,000.0 million. The dual tranche format presented an overdemand of 1.2 times, confirming the high value of the CABEI franchise in the Mexican market, reflected in the participation of a diverse base of institutional investors such as Investment Funds, Commercial Banks, Retirement Fund Administrators (AFORES), Insurance Companies and Private Banks. It also confirms CABEI's position as the leading multilateral issuer of social bonds in the Mexican market.
The funds raised through this issue will be used to finance eligible social projects under the criteria established in CABEI's Social Bonds Framework, aligned with the principles of the International Capital Market Association (ICMA) for the balanced social development of the Central American region.
In line with its role as a leading multilateral development bank in the region, CABEI participates in the financing of projects that emphasize social development, in line with the achievement of the Sustainable Development Goals (SDGs). Thus, committed to the Environmental, Social and Governance (ESG) framework, sustainably labeled issuances have been made for an aggregate amount exceeding US$4,600.0 million in the global markets since 2019.
