Mexico’s Ministry of Finance and Public Credit has completed a landmark issuance of sovereign sustainable bonds totaling €4.75 billion, aimed at financing public projects aligned with the United Nations Sustainable Development Goals (SDGs).

The transaction featured three tranches: a 5-year €2 billion bond, a 10-year €1.75 billion bond, and a 14-year €1 billion bond, each linked to sustainable outcomes in sectors ranging from health and education to climate action and responsible production.

According to the Ministry, the offering achieved strong global investor interest, with an order book of €13.5 billion and participation from more than 180 international investors, reflecting robust demand for sovereign ESG instruments even in an uncertain geopolitical environment.

This issuance represents the largest ESG-labelled euro-denominated bond by a Latin American sovereign and the largest such transaction outside Europe.

The bonds were issued under Mexico’s recently updated Sovereign Framework for Sustainable Financing, which broadens the scope of eligible expenditures mapped to 13 UN SDGs, including Reduced Inequalities (SDG 10) and Responsible Consumption (SDG 12), alongside traditional objectives such as Clean Water (SDG 6), Affordable Clean Energy (SDG 7) and Climate Action (SDG 13).

Since introducing SDG-linked sovereign bonds in 2020, Mexico has now issued 56 sustainable bonds across multiple currencies (euros, dollars, pesos and yen), totaling more than $32 billion in cumulative sustainable financing.

The government has indicated that net proceeds will be allocated to public finance programs that meet the eligibility criteria defined in its sustainable finance framework, supporting long-term social and environmental objectives and this indicates the need for a centralized ESG data and reporting system for robust ESG management.