Green bonds issued to back Mexico City's new green airport

Image by Grupo Aeroportuario de la Ciudad de Mexico (www.aeropuerto.gob.mx).

September 28 (SeeNews) - Mexico City's Airport Trust sold USD 2 billion (EUR 1.8bn) in green bonds to help finance the new airport, which is planned to be carbon neutral with 100% of the energy coming from clean sources.

The state-controlled Airport Trust, or Grupo Aeroportuario de la Ciudad de Mexico SA de CV, announced on September 22 that it has sold 10-year and 30-year bonds, each tranche of USD 1 billion. The annual interest rate is 4.25% and 5.5%, respectively.

The new airport, which is intended to reach an annual capacity of 125 million passengers one day, will use solar systems for power generation and will aim to be very efficient when it comes to water usage. Various measures will be taken to limit the project’s impact on the environment and the airport will aim to secure LEED certifications.

The new airport is to begin operations in 2020, according to current plans. The initial phase envisages passenger capacity of 50 million per year.

In June, the Climate Bonds Initiative (CBI) chief executive Sean Kidney told El Economista that Mexico has the potential to issue USD 2 billion of green bonds in three years. A recent report by the organisation shows there are USD 1.3 billion in climate-aligned bonds outstanding in the country. Mexican-based development bank Nacional Financiera SNC (Nafin) has issued green bonds twice, to finance renewable energy projects.

(USD 1 = EUR 0.89)

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