Global law firm White & Case LLP has advised Fondo Especial para Financiamientos Agropecuarios (FEFA) on the issuance of long-term bonds (Certificados Bursátiles) for a total aggregate amount of MXN 7 billion.
The offering comprised three tranches, including a MXN 2.18 billion bond with a maturity of 1.5 years at the risk-free floating interest rate (TIIE de Fondeo) plus a spread of 0.30 percent; a MXN 323 million bond with a maturity of 2.8 years at TIIE de Fondeo, plus a spread of 0.33 percent; and an ESG bond, specifically characterized as a blue bond for MXN 4.5 billion with a maturity of six years, focused on the development of fishing and aquaculture at a fixed rate of 10.18 percent.
The blue bond is the first for FEFA, made in correspondence with FEFA's new Sustainable Bonds Framework, as well as the first issuance in Mexico with these features, and is one of only seven bond issuances globally focused on the development of fishing and aquaculture activities.
Established in 1965, FEFA is the Mexican governmental development trust dedicated to finance the agriculture sector. It offers financing, subsidies and other services for the production, recollection and distribution of goods and services through long-term financing for the acquisition of machinery, equipment and installations, among others. FEFA is integrated as part of Trust Funds for Rural Development (FIRA), which operates as a second-tier development bank that offers credit and guarantees, training, technical assistance and technology-transfer support to the agriculture, livestock, fishing, forestry and agribusiness sectors in Mexico.
White & Case has advised FEFA on all of its bond issuances since 2016.
The White & Case team in Mexico City was led by counsel Eric Quiles and partner Carlos Mainero, and included associate Viridiana Alanis.
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