Mexico Raises Record EU4.75 Billion in SDG-Linked Sustainable Bonds

Mexico's Ministry of Finance and Public Credit has issued a series of sustainable bonds raising EUR 4.75 billion, the largest ESG-labelled bond issuance by a Latin American sovereign and the largest ESG-labelled euro transaction by any non-European sovereign. The three-tranche offering attracted an order book of EUR 13.5 billion from more than 180 international investors.

The issuance comprised 5-year notes of EUR 2 billion, 10-year notes of EUR 1.75 billion, and 14-year notes of EUR 1 billion, structured to finance projects aligned with 13 United Nations Sustainable Development Goals. The offering follows Mexico's update of its Sovereign Framework for Sustainable Financing, which expanded eligible sustainable expenditure categories to include SDG 10 on Reduced Inequalities and SDG 12 on Responsible Consumption, alongside existing categories covering climate action, clean energy, education, health, and sustainable cities, among others.

The updated framework also incorporated the Mexican Sustainable Taxonomy, launched in 2023, as an analytical tool for assessing eligible expenditures. Mexico has become a significant emerging market issuer of sustainable bonds, with its first SDG-linked bond issued in 2020. The country has now issued 56 bonds denominated in euros, dollars, pesos and yen, with cumulative issuance exceeding USD 32 billion, demonstrating consistent access to global sustainable debt markets.

The strong demand, with the order book more than 2.8 times oversubscribed, signals continued global investor appetite for sovereign sustainable debt even amid geopolitical complexity. Joint bookrunner Crédit Agricole CIB noted the transaction's record-setting nature for non-European sovereign ESG euro issuances. Mexico's Ministry of Finance said the result demonstrates investor confidence in Mexican sovereign instruments, while the updated framework's inclusion of SDG 10 and 12 broadens the social and responsible consumption dimensions of the country's sustainability financing.

Key figure — EUR 4.75 billion