IDB Invest has issued a social bond for approximately 125 million dollars in local currency in Mexico, the second sustainable issuance by IDB Invest in Mexico.

The funds will be used to finance projects to improve financing conditions for micro, small and medium-sized enterprises (MSMEs) in value chains in Latin America and the Caribbean, supporting the creation of jobs and contributing to the creation of ecosystems that strengthen MSMEs, increasing their competitiveness and sustainability.

The 3-year issuance received local ratings of mxAAA by S&P Global Ratings, AAA.mx by Moody’s and AAA(mex) by Fitch Ratings, respectively. Scotiabank and Santander acted as placement agents in the transaction. The transaction was oversubscribed by 1.2x. Investment funds raised 52% of the bonds issued, while pension funds (Afores) raised 28%, and the remaining 20% was raised by banks and brokerage firms.