The Mexican government is working on the issuance of a sovereign bond linked to the United Nations Sustainable Development Goals (SDGs) in pesos in the local market.

Mexico issued its first sustainable bond linked to the SDGs in 2020 for 750 million euros, with a term of seven years and a yield to maturity of 1.603%, with a coupon of 1.350%. Then, in July 2021, it placed a second 15-year sustainable bond for €1.25 billion at a coupon rate of 2.25%.

About 67% of Mexico’s budget is linked to the SDGs. The Undersecretary of Finance is working with the financial sector to include sustainable criteria in the mobilisation of private capital.