Mexican-based development bank Nacional Financiera SNC (Nafin) is issuing a USD-500-million (EUR 460m) green bond to finance nine wind power projects in the country.
This is the first green bond from Mexico. The Climate Bonds Initiative (CBI) said demand for it has surpassed USD 2.5 billion from more than 100 investors in Asia, Europe, Latin America and the US. The raised amount will be used to finance wind projects in Mexican states Oaxaca, Nuevo Leon and Baja California.
CBI pointed out that this is Latin America’s first green bond with Climate Bonds Standard Board certification. It will have a five-year tenure and a yield to maturity of 3.41%.
“A Mexico based bond issuance with Climate Bonds Standard Board certification sends a positive signal throughout Latin America and internationally that green bonds can be a valuable source of development capital for a range of low carbon projects,” said CBI head Sean Kidney.