Mexico Secures MX$35 Billion in Bondes G, Bono S Sale

Mexico completed a simultaneous sovereign issuance of Bondes G and the Bono S under its Sustainable Financing Framework, drawing strong oversubscription from both domestic and international investors. The MX$3 billion transaction strengthens the country’s sustainable finance architecture by integrating the Mexican Sustainable Taxonomy, enhancing reporting standards, and supporting the development of a sustainable yield curve.

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Mexico executed its first simultaneous placement of the year for Bondes G and Bono S, raising a total of MX$35 billion (US$2.04 billion) through a linked issuance mechanism known as “vasos comunicantes,” the Ministry of Finance (SHCP) reported. The transaction, conducted on Feb. 19, combined MX$31.45 billion in Bondes G — floating-rate government securities — with MX$3.55 billion (US$207.13 million) in the fixed-rate Bono S. 

The Bondes G were issued across three maturities: MX$8.05 billion (US$469.66 million) at three years, MX$9.35 billion (US$545.5 million) at four years and MX$14.05 billion (US$819.7 million) at six years. The respective spreads over the reference rate were 0.1579%, 0.1844% and 0.2074%. The 10-year Bono S was placed at a yield of 8.86%.

Total demand reached MX$82.257 billion (US$4.8 billion), representing 2.35 times the amount offered. Authorities said the oversubscription reflected robust participation from both domestic and international investors and underscored market appetite for sovereign sustainable instruments issued under Mexico’s updated Sustainable Financing Framework.

Mexico Strengthens Sustainable Finance Standards

The updated framework replaces the original version published in 2020 and aligns Mexico’s sustainable financing strategy with the National Development Plan (PND) 2025–2030. For the first time, it fully integrates the criteria of the Mexican Sustainable Taxonomy, aiming to mitigate greenwashing risks and enhance comparability with international sustainable finance standards.

The framework establishes a multi-stage governance process for project selection and allocation of proceeds. SHCP leads the process in coordination with relevant line ministries and public entities responsible for project execution. Eligible projects must demonstrate alignment with the PND 2025–2030, the Agenda 2030 Sustainable Development Goals (SDGs) and Mexico’s updated Nationally Determined Contribution (NDC 3.0), presented in 2025 at COP30.

Eligible expenditures may include both new investments and refinancing of existing projects, subject to defined look-back periods. The framework specifies that proceeds from sustainable instruments will be tracked through internal budgetary systems to ensure traceability, transparency and the prevention of double counting.

Reporting requirements have also been strengthened. Mexico has committed to publishing annual allocation and impact reports for each sustainable finance instrument. Allocation reports will detail the distribution of proceeds by category, program and geographic region, while impact reports will disclose quantitative performance indicators where available.

Indicative environmental metrics include greenhouse gas emissions avoided or reduced, renewable energy capacity installed, energy savings achieved, hectares of ecosystems restored and volumes of waste diverted or recycled. Social indicators may include the number of beneficiaries reached through health, education or social protection programs; affordable housing units supported; and expanded access to basic services in underserved regions. Where direct measurement is not feasible, the framework permits the use of proxy indicators and qualitative assessments, provided methodologies are disclosed transparently.

The updated framework received the highest possible rating, SQS1, in a Second Party Opinion from Moody’s, confirming alignment with international standards such as the Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines of the International Capital Market Association. It also aligns with the Green Loan and Social Loan Principles issued by the Loan Market Association, the Loan Syndications and Trading Association and the Asia Pacific Loan Market Association.

Bondes G and Bono S

Bondes G are structured as floating-rate instruments indexed to Banco de México’s TIIE de Fondeo, allowing returns to adjust with liquidity conditions. The Bono S carries a fixed rate. Both instruments are aligned with the Sustainable Development Goals, linking proceeds to projects delivering environmental, social and governance benefits consistent with priorities outlined in Mexico’s National Development Plan.

Officials said the issuance supports Mexico’s Sustainable Financing Mobilization Strategy and contributes to the consolidation of sustainable yield curves, providing reference benchmarks for future thematic bond offerings across sectors and financial intermediaries. The placement was conducted in accordance with the Federal Public Debt Law and within borrowing limits approved by Congress for the 2026 fiscal year.