Partial Acquisition of Publicly Offered Samurai Bonds, SDG Bonds, Issued by Government of Mexico
Supporting Vitalization of ESG Samurai Bond Market and Strengthening Cooperation with Government of Mexico
- Region: Latin America and the Caribbean
- Untied Loans
The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) partially acquired yen-denominated foreign bonds (Samurai bonds＊１
) today under the Guarantee and Acquisition toward Tokyo market Enhancement (GATE)＊３
financing facility. These Samurai bonds, totaling JPY 75.6 billion, were issued by the Government of the United Mexican States (Mexico) through public placement in the Japanese market.
In December 2009 and October 2010＊４
, JBIC provided guarantees for Samurai bonds issued by the Government of Mexico, and partially acquired such bonds in June 2012 and August 2013＊５
. This time the bonds that JBIC partially acquired are the first SDG bonds that the Government of Mexico has issued in the Tokyo bond market.
In February 2020, the Government of Mexico formulated the SDG Sovereign Bond Framework in collaboration with the United Nations Development Programme (UNDP). The Framework is aligned with the Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines of the International Capital Market Association (ICMA) each updated as of June 2021. The Samurai bonds issued by the Government of Mexico this time are in line with this Framework.
In its National Development Plan 2019-2024, the Government of Mexico aims to promote development that focuses on improving the living conditions of the population within areas in poverty. The bonds will serve to solve such social issues in Mexico, since an amount equivalent to the proceeds of the bonds are or will be allocated to existing federal programs selected under the SDG Sovereign Bond Framework as eligible expenditures to facilitate the improvement of the living conditions in the areas of poverty, mostly in southern Mexico. These programs focus especially on improving standards in education, healthcare, and basic social infrastructure. The purchase of the bonds will contribute toward the facilitation, thereby strengthening the cooperation between JBIC and the Government of Mexico.
Supporting SDG Bond issuance by the Government of Mexico will contribute toward maintaining and increasing the presence of Mexican sovereign bonds in the Tokyo bond market with an ESG focus. It will also offer a wide range of investment opportunities to Japanese investors, thereby invigorating the Samurai bond market.
JBIC will continue to support the issuance of Samurai bonds by foreign governments and their agencies in the Tokyo bond market by utilizing its GATE financing facility, as well as contribute toward further deepening and developing economic relations between Japan and other countries.
Samurai bonds are yen-denominated bonds issued in the Tokyo bond market by foreign governments or companies. The original Shelf Registration Statement was filed on March 29, 2022, and Amendment to Shelf Registration Statement on August 23, 2022, and Supplemental Document to Shelf Registration Statement submitted to the Kanto Local Finance Bureau from the Government of Mexico on August 26, 2022.
SDG bonds are the bonds whose proceeds go to projects that contribute toward the SDGs and the bonds with an attribute for contribution toward the realization of the SDGs, both in the context of the issuer's sustainability strategy. ESG investing (investment where environmental, social, and governance impact are considered) includes investing in SDG bonds.