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 8.0 billion under its bond program as a recurring issuer.
The offering comprised three tranches, including a MXN 1.86 billion bond with a maturity of approximately 1.6 years at the risk-free floating interest rate (TIIE de Fondeo) plus a spread of 0.29 percent; a MXN 1.76 billion bond with a maturity of approximately three years at TIIE de Fondeo plus a spread of 0.33 percent; and an ESG bond, specifically characterized as a gender bond for MXN 4.37 billion with a maturity of approximately five years at TIIE de Fondeo plus a spread of 0.40 percent.
The proceeds of the gender bond, issued under FEFA’s new Sustainable Bonds Framework, which received a second-party opinion from Sustainalytics, will be used to support the financial inclusion of women in the agribusiness and to finance agricultural activities by women across the agro-industry. This fifth gender bond by FEFA was conceived as a strategic source of funding to channel resources to women producers and entrepreneurs in rural areas through productive microloans, using tailored financial products that promote their financial inclusion and productive capacity development.
Established in 1965, FEFA is the Mexican governmental development trust dedicated to finance the agriculture sector. It offers financing, subsidies and other services for 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 was led by partner Carlos Mainero, counsel Eric Quiles and included associate Viridiana Alanis and legal assistant Ana Sofía Vivot (all in Mexico City).
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