Green bonds are not a fad for governments in Mexico, but rather financing to build works such as the Cablebús in Mexico City, said Édgar Amador Zamora, Secretary of Finance and Public Credit (SHCP).
“Green and sustainable instruments are not a fad or a niche, but a central tool to finance the infrastructure (such as Cablebús) that today’s economies need to face climate change and promote development,” said the official.
With the new green bond placed on the Mexican Stock Exchange, Mexico City once again goes to the market with an unsecured issue at a fixed rate, for an amount of up to 3 billion pesos, with a term of 10 years.
The bond – with an AAA rating by Fitch and HR Ratings – is aligned with both the international principles of green bonds and the Sustainable Taxonomy of Mexico and the guidelines issued by the Ministry of Finance and Public Credit for this type of subnational financing.
The official added that the resources from this issue will be used to finance Lines 5 and 6 of the Cablebús, an emblematic project of sustainable mobility and social inclusion initiated when the now president Claudia Sheinbaum Pardo was head of government of Mexico City.
“The Cablebús is not only a modern transportation system, it is also a concrete tool to reduce inequalities, connect historically marginalized areas with the rest of the city, reduce travel times and reduce polluting emissions by replacing more carbon-intensive means of transportation,” he stated.
The economist said that Cablebús is “betting on a more connected, more inclusive, fairer and cleaner city.”
For the Ministry of Finance and Public Credit, the Mexico City issue strengthens the subnational debt, based on criteria of responsibility, transparency and sustainability, is giving results.
“It demonstrates that green and sustainable instruments are neither a fad nor a niche, but a central tool to finance the infrastructure that today’s economies need to confront climate change and promote development,” he indicated.
The green bond offers a solid return risk profile, backed by Mexico City’s financial discipline, as well as the possibility of participating in a project with tangible environmental and social impact, the economist noted.
“Every peso placed today will translate into cable buses that connect neighborhoods, cleaner air and a better quality of life for thousands of people,” concluded the Secretary of Finance and Public Credit.
Follow information about business and current events in Forbes Mexico
Do you like to get informed through Google News? Follow our Showcase to have the best stories
