Mexico in $2.9 Billion SDG Bond Offering

Cleary Gottlieb represented the United Mexican States (Mexico) in a registered offering of $2.94 billion principal amount of its 6.338% global bonds due 2053, tied to the United Nations’ sustainable development goals (SDGs).

The offering launched and priced on April 20, 2023, and is expected to close on April 28, 2023. This transaction represents Mexico’s fourth series of SDG-linked bonds in the international capital markets. Mexico intends to allocate an amount equal to the proceeds from the sale of the bonds to 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 tender offer to purchase, for cash, certain series of outstanding bonds, which launched on April 20, 2023, 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 tender offer resulted in the repurchase of an aggregate of approximately $1.95 billion in principal amount of outstanding securities across five series.

Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA LLC, and Morgan Stanley & Co. LLC acted as underwriters for the bond offering and joint dealer managers for the tender offer.

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