- Mexico will begin an investor roadshow on February 24
- Investor appetite for higher-yielding green bonds is high
Mexico’s debut in the green bond market may be well-received by investors hungry for environmentally and socially conscious debt.
After Chile sold long-dated dollar- and euro-denominated green bonds paying a record low yield last month, Mexico will hold investor meetings to debut its SDG Sovereign Bond Framework, which would be used to issue green euro-denominated debt.
With central banks around the world lowering interest rates, market appetite for higher-yielding Latin American sovereign bonds is high. Bonds that comply with environmental, social and corporate governance standards, ESG, could add an extra layer of attractiveness, according to Michael Roche, a strategist at Seaport Global Holdings in New York.
“Depending on the strength of its ESG score, there looks to be plenty of money chasing these securities,” said Roche, a strategist at Seaport Global Holdings in New York.
The Inter-American Development Bank said it expects Latin American borrowers to raise as much as $7 billion for environmentally-friendly projects in 2020.
Mexico hired BNP Paribas, Credit Agricole CIB and NATIXIS for the roadshow, which will begin on February 24.
Source: bloomberg
