Just weeks before the end of 2025, the Ministry of Finance and Public Credit (SHCP) announced the issuance of Bondes G and Bondos S totaling 26.2 billion pesos, with the aim of covering government spending for the remainder of the year.
The issuance was distributed as follows: 16.2 billion pesos in Bondes G and 10 billion pesos in Bondos S.
For the Bondes G, 7 billion pesos were allocated to the two-year term, 6.9 billion pesos to the four-year term, and 2.3 billion pesos to the six-year term, with respective interest rates of 0.1609%, 0.1824%, and 0.2029%.
The Bondos S, meanwhile, registered a yield of 8.86%.
The operation was conducted using a “communicating vessels” mechanism, allowing the participation of both domestic and foreign investors, which demonstrates confidence in the instruments issued by the federal government.
This action by the Mexican government reinforces the country’s position as a regional leader in issuing debt instruments linked to the Sustainable Development Goals (SDGs), while simultaneously strengthening the liquidity and depth of the domestic sustainable debt market.
This operation, which saw total demand of 48.012 billion pesos, equivalent to 1.83 times the amount placed, supports the Eligible Expenditure portfolio for fiscal year 2025, comprised of budget programs aligned with the criteria of the Framework for Sovereign Bonds Linked to the SDGs.
Bondes G are sustainable floating-rate instruments, referenced to the Bank of Mexico’s Funding TIIE (Interbank Equilibrium Interest Rate), which allows them to adjust to market liquidity conditions.
The S Bond is a fixed-rate, sustainable instrument with an 8% coupon, designed to increase transparency in the allocation of budgetary resources to projects that meet Environmental, Social, and Governance (ESG) criteria, in line with national goals and international sustainability standards.
The issuance supports priority programs in areas such as education, health, water infrastructure, and biodiversity conservation, contributing to the advancement of national priorities in sustainable development.
Furthermore, it strengthens the sustainable yield curve, considered a fundamental input for future sustainable thematic issuances.
The Mexican government emphasized that the operation was carried out in strict compliance with the Federal Public Debt Law and within the debt ceilings authorized by the Congress of the Union for the 2025 fiscal year.
The bonds issued by the Ministry of Finance on December 5 were distributed as follows:
- The Mexican government carried out its second simultaneous placement of the year of Bondes G and Bondo S bonds.
- A total of 26.2 billion pesos were placed: 16.2 billion in Bondes G and 10 billion in Bondo S bonds.
- The Bondes G bonds were issued with maturities of 2, 4, and 6 years, and the Bondo S bond with a 10-year maturity.
- The Bondes G bonds had premiums of 0.1609%, 0.1824%, and 0.2029%, depending on the maturity.
- The Bondo S bond registered a yield of 8.86%.
- Demand for the bond issuance was 48.012 billion pesos, 1.83 times the amount placed.
- Domestic and foreign investors participated.
- The bond issuances are linked to the Sustainable Development Goals and meet ESG criteria.
- The funds are earmarked for education, health, water, and biodiversity programs through 2025.
- Mexico strengthens its “Sustainable Finance Mobilization Strategy” and its sustainable yield curve.
Source: infobae
