Mexico in $2.2 Billion SDG Bond Offering

August 8, 2022

Cleary Gottlieb represented the United Mexican States (Mexico) in a registered offering of $2.2 billion principal amount of its 4.875% global bonds due 2033, tied to the United Nations’ sustainable development goals (SDGs).

The offering launched and priced on August 8, 2022, and is expected to close on August 19, 2022. This transaction represents Mexico’s third series of SDG-linked bonds. Mexico intends to expend an amount equal to the proceeds from the sale of the bonds to fund budgetary programs that qualify as eligible expenditures under Mexico’s SDG sovereign bond framework. The framework aims to integrate achievement of the SDGs into Mexico’s national planning and budgetary and fiscal policies.

Concurrent with the launch of the bond offering, Mexico also conducted a “switch” tender offer to purchase, for cash, certain series of outstanding bonds, which launched on August 8, 2022, and expired the same day. Holders of certain series of outstanding Mexico securities were offered the opportunity to switch into the new bonds by submitting an indication of interest concurrently with their tender. The switch tender offer resulted in the repurchase of an aggregate of approximately $487 million in principal amount of outstanding securities across 12 series.

BBVA Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and Natixis Securities Americas LLC acted as underwriters for the bond offering and joint dealer managers for the switch tender offer.

In addition to paying the purchase price for the outstanding securities pursuant to the switch tender offer, Mexico also expects to use the net proceeds of the bond offering toward the payment of the redemption price for part or all of its outstanding U.S. dollar-denominated 3.6% global notes due 2025.

Cleary has previously represented Mexico, as issuer, in numerous securities transactions for more than 30 years.