Established in 1954 by Mexico's federal government, Trust Funds for Agricultural Development (FIRA) is a 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.
This bond is issued by one of the four trust funds that integrate FIRA, FEFA (1965) (Fondo Especial para Financiamientos Agropecuarios), whose remit is in the area of financing and other services for production, recollection and distribution of goods and services through long-term financing for the acquisition of machinery, equipment, installations, etc.
This first green bond by this issuer stimulated the development of the relevant "Protected Agriculture" Criteria under of the Climate Bonds Standard. Therefore it is the first Certified Climate Bond to be related to agriculture. Agriculture is a large source of human caused GHG emissions.
The use of proceeds will finance and refinance investments made for 11 shade houses and 28 greenhouses as well as affiliated irrigation systems. These structures and systems emit less greenhouse gases than open field agriculture. They are also more water efficient and require less use of chemical inputs.
This is the second Certified Climate Bond to be issued from Mexico, after the first one, which was the USD 500 million issuance in 2015 by the Nacional Financiera.
In November 2019, FIRA issued the second Certified Climate Bond, which is also the first bond to use the Forestry Criteria.
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DATE OF ISSUE |
TYPE OF INSTRUMENT |
SIZE |
TENOR |
COUNTRY OF ISSUE |
CLIMATE BONDS SECTOR CRITERIA |
VERIFIER'S REPORT |
ANNUAL REPORT | FURTHER INFORMATION |
|---|---|---|---|---|---|---|---|---|
| October 2018 | Use of Proceeds | MXN 2.5 billion (USD 130 million) | 3 years | Mexico | Protected Agriculture | pre issuance verification report by Sustainalytics | Press Release | |
| November 2019 | Use of Proceeds |
MXN 2.5 billion (USD 129 million) |
4.5 years | Mexico |
Forestry Water Infrastructure (irrigation) Solar |
Press Release |