Cleary counsels Mexico on $2.9bn sustainable bond offering

Cleary Gottlieb has counselled the United Mexican States (Mexico) on a registered offering of $2,941,388,000 principal amount of its 6.338% global bonds due 2053, linked to the United Nations Sustainable Development Goals (SDGs).

The offering was launched and priced on 20 April 2023, and is expected to close on 28 April 2023. This transaction represents Mexico’s fourth series of SDG-linked bonds in the international capital markets.

Mexico intends to allocate an amount equal to the proceeds from the sale of the bonds to budgetary programmes that qualify as eligible expenditures under Mexico’s SDG sovereign bond framework. The framework aims to integrate the achievement of the SDGs into Mexico’s national planning, budgetary and fiscal policies.

In conjunction with the launch of the bond offering, Mexico also conducted a tender offer, for cash, of certain outstanding series of bonds, which was launched on 20 April 2023 and expired on the same day. Holders of certain series of Mexico’s outstanding securities were offered the opportunity to “switch” to the new bonds by submitting an indication of interest at the same time as their tender offer. The tender offer resulted in the repurchase of a total of approximately $1.95 billion principal amount of outstanding securities of 5 series.

Citigroup Global Markets, HSBC Securities (USA), Mizuho Securities USA and Morgan Stanley & Co. acted as underwriters for the bond offering and joint book-running managers for the tender offer.

Cleary’s team included partner Jorge Juantorena (pictured), associates Ignacio Lagos, Olivia Wittels, and Martin Sasson, and law clerk Rebecca Niederberger Martinez. Counsel Matthew Brigham and associate Kathy Zhang advised on New York tax matters. All lawyers are based in New York.