Mexico raised 75.6 billion yen ($551.2 million) by placing samurai bonds in five tranches, IFR, a Refinitiv financial information service, reported on Friday.
The securities are linked to the United Nations sustainable development goals under the SDG sovereign bond framework.
The offering consisted of 29.7 billion yen in three-year notes at a rate of 1%, 23.8 billion yen in five years at 1.25%, 14.9 billion yen in 10 years at 1.83%, 4 billion yen in 15 years and 3.2 billion yen over 20 years, according to IFR.
The instruments were purchased by large banking institutions, insurance companies, asset management firms, specialized banks, central public accounts, regional cooperatives, regional banks and other entities, including foreign investors, who took 11% of the total.
Daiwa, Mitsubishi UFJ Morgan Stanley, Mizuho and Nomura acted as lead managers for the transaction, which marks the Latin American country’s first visit to the samurai market since 2019.
In this way, Mexico becomes the first country in Latin America to place sustainable bonds in Japan. This placement of sustainable debt becomes the largest ever made by any country in the world in the Japanese debt market, the Treasury Department detailed in a statement.
According to the Reference Framework for Sovereign Bonds with which this operation was carried out and following the guidelines for sustainable bonds published by the International Capital Market Association (ICMA), an amount equivalent to the total issued will be allocated to sustainable projects, which are eligible expenses for the current fiscal year, highlighted the Treasury.
