Sustainable Mobility Bond in Mexico

approved

The Project consists of the subscription of a senior thematic bond  (Sustainable Bond) in local currency (MXN), issued by a new special purpose vehicle (“SPV”) to be incorporated in Mexico. The issuance will be backed by a portfolio of segregated loans under a private issuance modality  (portfolio securitization), with Mercader Financial, S.A., SOFOM, E.R. (“Mercader” or the “Originator”) acting as the servicer and originator of the underlying loans.The issuance to be subscribed by IDB Invest will consist of the following characteristics: (i) senior bonds denominated in Mexican pesos (“MXN”), (ii) it will have a tenor of up to five years, including a two-year revolving period and a three-year amortization period, (iii) categorized as a thematic bond under the “sustainable bond” label and (iv) it will be aligned with the provisions of the International Capital Markets Association (“ICMA”). The use of funds will allow Mercader to originate new green loans as well as loans for micro, small and medium-sized enterprises (“MSMEs”) in Mexico.