Mexico's Banobras joins green rush

Mexico's Banobras joins green rush

Mexico Bonds

Banobras is the latest Mexican financial institution to join the rush for green securities, charting a potential MXN10bn ($558.7m) trade.

The development bank is expected to print a three-year floater and a seven-year fixed rate bond, according to a report from Moody’s.

Both Moody's and Fitch Ratings gave the prospective new issue a AAA local rating. Moody's said proceeds will be invested in green and social projects that support sustainable developments in Mexico.

Banorte-IXE, HSBC and Santander are leading the trade.

Fellow development bank Nafin sold a MXN2bn green bond in September last year.