Mexico City Government completes landmark green bond offering to drive sustainable urban infrastructure
Client(s) Gobierno de la Ciudad de Mexico (Government of Mexico City)
Jones Day advised the Government of Mexico City on the successful issuance of its US$166 million (MX$3 billion) green bond, a landmark transaction supporting the City’s sustainable urban infrastructure strategy. The bond is aligned with Mexico City’s SDG-Aligned Financing Framework, with proceeds dedicated to the development of Cablebús Lines five and six, a flagship mobility project with significant environmental and social impact. This transaction marks Mexico City’s return to the domestic capital markets after nearly a decade. Jones Day advised on the financing structure and placement, which incorporates a loan with Banco Santander. The loan proceeds provide credit support for the transaction and serve as a source of payment for bondholders, enhancing the overall strength and bankability of the issuance. The Jones Day team designed and implemented the capital markets framework through which Mexico City may issue securities in the Mexican market. The structure allows the City to access long-term financing backed by government-contracted credit facilities, materially expanding its ability to deliver large-scale sustainable infrastructure. The Jones Day Government Regulation team, together with Santander’s ESG team, supported the development of Mexico City’s SDG-Aligned Framework, establishing a robust platform for future sustainable financing. The framework promotes transparency, supports impact measurement and reporting, and reinforces the City’s commitment to climate-aligned infrastructure and measurable environmental outcomes.
