Mexico’s €750 Million Inaugural SDG Sovereign Bond

Cleary Gottlieb represented the United Mexican States (Mexico) in the deal. Sullivan & Cromwell and Ritch, Mueller, Heather y Nicolau advised BNP Paribas Securities Corp., Crédit Agricole Securities USA Inc., Morgan Stanley & Co. LLC and Natixis Securities Americas LLC acting as underwriters on the offering.

The United Mexican States (Mexico) executed a €750 million offering of a new benchmark bond linked to the United Nations’ sustainable development goals (SDGs). The offering launched and priced on September 14, 2020, and closed on September 18, 2020. With this transaction, Mexico is the first sovereign to issue an SDG-linked bond.

Mexico intends to expend an amount equal to the proceeds from the sale of the notes to fund budgetary programs that qualify as eligible expenditures under Mexico’s SDG Sovereign Bond Framework, which aims to integrate achievement of the SDGs into Mexico’s national planning and budgetary and fiscal policies.

BNP Paribas, Crédit Agricole, Morgan Stanley and Natixis acted as underwriters for the offering.

The Cleary team consisted of partners Nick Grabar (Picture) and Jorge Juantorena and associates Stephanie Fontana and Olivia Wittels. Partner Jason Factor, senior attorney David Fisher and associate Michael Eis provided advice on New York tax matters. All lawyers are based in New York.

Sullivan & Cromwell advised BNP Paribas Securities Corp., Crédit Agricole Securities USA Inc., Morgan Stanley & Co. LLC and Natixis Securities Americas LLC with Werner Federico Ahlers, Christopher L. Mann, Samantha Saunders and Renata G. Mascarenhas.

Ritch, Mueller, Heather y Nicolau advised the underwriters with Carlos F. Obregón Rojo, Luis Nicolau, Javier Barrera Gazcón and Luis Alonso Suárez del Real Tostado.

Involved fees earner: Michael Eis – Cleary Gottlieb Steen & Hamilton; Jason Factor – Cleary Gottlieb Steen & Hamilton; Stephanie Fontana – Cleary Gottlieb Steen & Hamilton; Nicolás Grabar – Cleary Gottlieb Steen & Hamilton; Jorge Juantorena – Cleary Gottlieb Steen & Hamilton; David Stewart Fisher – Cleary Gottlieb Steen & Hamilton; Olivia Wittels – Cleary Gottlieb Steen & Hamilton; Javier Barrera Gazcon – Ritch, Mueller, Heather y Nicolau, SC; Luis Nicolau Gutiérrez – Ritch, Mueller, Heather y Nicolau, SC; Carlos F. Obregón Rojo – Ritch, Mueller, Heather y Nicolau, SC; Luis Alonso Suárez del Real Tostado – Ritch, Mueller, Heather y Nicolau, SC; Werner Ahlers – Sullivan & Cromwell; Christopher Mann – Sullivan & Cromwell; Renata Mascarenhas – Sullivan & Cromwell;

Law Firms: Cleary Gottlieb Steen & Hamilton; Ritch, Mueller, Heather y Nicolau, SC; Sullivan & Cromwell;

Clients: BNP Paribas Securities; Credit Agricole Securities (USA) Inc.; Morgan Stanley; Natixis Securities Americas; United States of Mexico;

Author: Ambrogio Visconti