Mexico's Bold Move: Historic Dual-Launch of G Bonds and S Bonds

In an unprecedented financial maneuver, Mexico raised 35 billion pesos through its first simultaneous issuance of sustainable G Bonds and an S Bond, aimed for 2026. This move, announced by the finance ministry, showcased varying maturities including floating rates for 3, 4, and 6 years, alongside a fixed-rate 10-year bond.

Investor interest was robust, with total demand reaching 82.257 billion pesos, more than twice the amount on offer. Of the total amount raised, 31.45 billion pesos came from G Bonds, with yields from 0.1579% to 0.2074% across different maturities. Additionally, the 10-year S Bond yielded 3.55 billion pesos at an 8.86% interest rate.

The issuance signifies Mexico's dedication to sustainable finance, bolstering its position in the global financial landscape and solidifying benchmark yield curves for upcoming thematic bonds.