After six years of existence, and after 44 launches, the bonds labeled in the Mexican Stock Exchange (BMV) already reach a total amount of 107,657.4 million pesos as of July 2022.
There are four types of bonds: sustainable, green, linked and social. Everyone’s objective is to raise funds, through Stock Certificates, from the large investing public -in the form of loans- that allow companies and governments to start their projects, according to the nature of each issuer.
The companies that have issued the largest thematic bonds in the last six years have been BBVA, with an amount of 10,000 million pesos, for the development of sustainable projects; Fibra Prologis, with 7,442 million pesos (green bond); Coca Cola FEMSA, with 6,965 million pesos (linked bonus); Banco Nacional de Obras y Servicios Públicos (Banobras), with 6,000 million pesos and Fibra Uno, with 5,200 million pesos, the latter for sustainable projects.
The main sectors that have issued thematic bonds come from development banks with 26.09% of the issues; followed by the financial sector with 22.24%; frequent consumption, with 15.85% and infrastructure with 12.18%.
The International Capital Market Association (ICMA) recognizes and defines three classifications, the same as international financial institutions such as the World Bank and the Inter-American Development Bank (IDB), which are divided into sustainable development bonds, green bonds, and social bonds.
As of July 2022, there are sustainable bond issues in Mexico (this type of bond raises funds for specific projects of a green or social nature) for 55,660 million pesos, which represent 52% of the total thematic financing in the BMV, these are They mainly focus on attacking inequality through ecological projects.
On the other hand, green bonds have a representation of 24% with an amount of 26,087.4 million pesos, while linked bonds appear with 17% with a total of 17,900 million pesos and social bonds remain with 7%. which means a value of 7,920 million pesos.
Green bonds consist of placing resources that are used to reduce the carbon footprint, this through clean transportation, renewable energy, and more initiatives to combat climate change. On the other hand, social bonds aim to support disadvantaged populations through access to basic infrastructure, affordable housing, financial and social inclusion, and gender equality.
In the BMV statement, it indicated that 2021 has been the greenest year for the thematic market, since 33.99% of the issues were generated. So far in 2022 (until the third week of July) a value of 20.920 million pesos has been generated in bond launches.
