The Mexican state of Nuevo León plans to sell MXN6.6 billion ($390 million) worth of sustainable bonds via a fiduciary to refinance debt for the Cuchillo II water project.
The state will place the 8.2-year fixed-rate bonds on June 21 through its local trustee Acueducto Cuchillo 2, the firm said late Friday in a securities filing.
Santander will act as underwriter and sustainable structuring agent and Caria Capital BI as structuring agent, the company said.
Fitch rates the bonds AAA on its local scale and its sustainable research arm provided second-party opinion on the bond’s framework, the firm added.
The Cuchillo II aqueduct pumps 5,000 liters per second along a 93-kilometer pipeline to Monterrey, the capital of Nuevo Léon, benefiting more than 5.5 million people, according to the local government.
Building work on the MXN12.2 billion project started in August 2022 and was inaugurated last December by Mexican President Andrés Manuel López Obrador.