BBVA Mexico and Profuturo place social bond to support SMEs

BBVA México, one of Mexico’s largest private banks, has successfully completed the placement of social bonds with the aim of strengthening financing for SMEs in the country, driving their development and growth with the first transaction of its kind in Mexico. Profuturo, a company dedicated to pension fund management in Mexico, was the sole investor in the transaction.

The issuance reached a total amount in local currency equivalent to approximately 90 million dollars, structured in two tranches: (i) with the ticker symbol BBVAMX 25S for half of the total amount at a variable rate for a five-year term; and (ii) BBVAMX 25-2S for the remaining half of the total amount at a fixed rate for an eight-year term.

The transaction was carried out under the BBVA Group’s Sustainable Debt Financing Framework, which is aligned with the UN Sustainable Development Goals (SDGs). Furthermore, the transaction is part of the “Plan Mexico”, an initiative promoted by the Mexican federal government, which objectives are to promote higher-value local sourcing, increase national and regional content, relaunch the “Made in Mexico” program, and create well-paying jobs in the manufacturing and service sectors.