Post by nurnobisorker22 on Feb 20, 2024 6:48:09 GMT
FIRA – Banco de México placed the first Financial Inclusion Social Bond in the country, for $3,920 million in the local debt market. Financial inclusion is a crucial issue for the development of countries, because it allows inequality gaps to be reduced, increases development opportunities, improves economic well-being and reduces poverty. Thus, this issue adds to the efforts of the Federal Government to reduce social lags. This bond is an innovative initiative to mobilize resources that can contribute to achieving a more inclusive financial system in Mexico. The issue has a technical basis, the result of a joint effort between FIRA – Banco de México and the Development Bank of Latin America (CAF), which in turn includes the second-party opinion prepared by Moody's ESG Solutions regarding to the 2021 Social Bond Principles of the International Capital Market Association.
The above provides clarity and security to investors in the use of the resources from the issue. The Financial Inclusion Social Bond was placed for 3 years at a TIIE funding rate plus 22 basis points with an excess demand of 1.6 times. The excess rate obtained was 6 basis points lower than the issuance prior to that period. In addition to the Social Bond, another 1.5-year bond Guatemala Mobile Number List was issued for $2,080 million at TIIE funding plus 17 basis points, 3 basis points lower than the previous transaction. With the two bonds, the total amount of $6,000 million was raised with a global demand of $15,337 million, which represents 2.6 times the amount issued.
This is the second operation in which FIRA – Banco de México uses the 1-day funding TIIE as a reference, which is the new reference rate promoted by the financial authorities according to the best international standards. The results of the issue reflect the confidence of the investing public in FIRA – Banco de México, in the Mexican countryside and particularly in the efforts to reduce the lag in financial inclusion. Finally, it should be noted that a broad base of investors participated, such as Afores, investment funds, insurance companies, wealth banks, brokerage houses, private banks and other institutional investors. For more information, consult FIRA's financial and sustainable inclusion strategy on our ESG site at.
The above provides clarity and security to investors in the use of the resources from the issue. The Financial Inclusion Social Bond was placed for 3 years at a TIIE funding rate plus 22 basis points with an excess demand of 1.6 times. The excess rate obtained was 6 basis points lower than the issuance prior to that period. In addition to the Social Bond, another 1.5-year bond Guatemala Mobile Number List was issued for $2,080 million at TIIE funding plus 17 basis points, 3 basis points lower than the previous transaction. With the two bonds, the total amount of $6,000 million was raised with a global demand of $15,337 million, which represents 2.6 times the amount issued.
This is the second operation in which FIRA – Banco de México uses the 1-day funding TIIE as a reference, which is the new reference rate promoted by the financial authorities according to the best international standards. The results of the issue reflect the confidence of the investing public in FIRA – Banco de México, in the Mexican countryside and particularly in the efforts to reduce the lag in financial inclusion. Finally, it should be noted that a broad base of investors participated, such as Afores, investment funds, insurance companies, wealth banks, brokerage houses, private banks and other institutional investors. For more information, consult FIRA's financial and sustainable inclusion strategy on our ESG site at.