S&C Represents Underwriters for Mexico’s Landmark €750 Million Sustainable Development Goals Bond OfferingOctober 8, 2020
In the first offering of its kind, the United Mexican States raised €750 million under its Sustainable Development Goals (SDG) Sovereign Bond Framework.
Mexico intends to expend resources equal to the offering's net proceeds to fund budgetary programs that qualify as eligible expenditures under its SDG Sovereign Bond Framework. Qualifying programs include expenditures on vulnerable population groups, such as those in extreme poverty, the indigenous population, the elderly and children. In 2015, all United Nations Member States adopted Sustainable Development Goals, and the United Nations Development Programme partnered with the Government of Mexico on this initiative.
The notes will be listed on the Luxembourg Stock Exchange for trading on the Euro MTF Market and on the London Stock Exchange for trading on the International Securities Market and the Sustainable Bond Market. The offering, which closed on September 18, is the country's fourth SEC-registered debt offering of 2020.
S&C, which acts as designated underwriters' counsel for offerings by the United Mexican States, represented BNP Paribas, Crédit Agricole Corporate and Investment Bank, Morgan Stanley & Co. International plc and Natixis Securities Americas LLC as joint lead underwriters and dealer managers. In April, S&C represented the underwriters of the United Mexican States' $6 billion triple-tranche note offering, which received historic investment demand.
The S&C team was led by Christopher Mann and Werner Ahlers with associate support from Renata Mascarenhas. London associate Samuel Saunders advised on sustainability and listing matters.
S&C frequently advises on sovereign offerings, including as regular underwriters' counsel for issuances by Brazil, Colombia and Panama. In September, the Firm represented the underwriters for the Republic of Panama's $2.575 billion debt offering, the largest capital markets financing in its history. This offering marked the first time that the nation had issued Panama law-governed Treasury Notes in reliance on Rule 144A and Regulation S simultaneously with a registered Global Bond offering. In April, S&C represented the underwriters for Panama's $2.5 billion global bond offering, the second largest in its history.
In June, the Firm represented the underwriters for the Republic of Colombia's $2.5 billion bond offering, which achieved three milestones: It carried the lowest coupon rate for one of its large-scale bonds; it achieved record demand for a Colombian issuance; and it attracted diversified investors.