IDB Invest issues first gender bond in Mexico

IDB Invest has issued a gender social bond worth MXN2.5 billion (about $122 million) with a three-year maturity in Mexico. This is the largest IDB Invest bond issue in Mexico to date and has been listed on the Mexican Institutional Stock Exchange. The funds raised will finance projects aimed at promoting gender equality and the empowerment of women in the region, thereby helping to advance the United Nations Sustainable Development Goal Number 5, Gender Equality.

BBVA and HSBC acted as underwriters in the deal. The transaction was 1.5 times oversubscribed, with orders worth more than MXN3.8 billion from 29 institutional investors. Strong demand allowed underwriters to reduce the rate during the placement, from the initial indicative price of 3 basis points to 0 basis points over TIIE 28. Investment funds accumulated 64% of the bonds issued, followed by government institutions with the 22%, bank treasuries with 8%, insurance companies with 2% and 4% distributed to pension funds, corporate treasuries and other investors.