The Mexican arm of Canada’s Scotiabank plans to sell green bonds as part of a three-tranche offering to raise MXN10 billion ($537 million), according to Fitch Ratings.
In its first local market deal in five years, Scotiabank Inverlat plans to price a three-year green bond over the TIIE interbank lending rate, a three-year Mexican peso-denominated bond at a fixed rate and a seven-year US dollar-denominated bond at a fixed rate over US Treasuries, Fitch said Thursday in a report.
The bank will use the proceeds from the green bond to refinance all or part of new or existing assets considered eligible under its sustainable financing framework, and for general corporate purposes, said the agency, which rates the bonds AAA(mex).
Scotiabank Inverlat last tapped the bond market in May 2019, when it issued $123 million worth of three-year notes in US dollars and MXN3.65 billion of three-year notes in Mexican pesos.