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19 January 2023

BBVA assisted Desarrollos Hidráulicos de Cancún in the issuance of the first blue bond in Mexico and the first of its kind for the bank

Blue bonds are debt securities issued for the purpose of carrying out projects that help resolve challenges related to the sustainability of the oceans and the Blue Economy. This is the first blue bond issued by BBVA globally and the first for Desarrollos Hidráulicos de Cancún.

BBVA Mexico has assisted Desarrollos Hidráulicos de Cancún (DHC) in the successful issuance of its first blue bond with the ticker symbol "DHIC 22". BBVA has acted as joint placement intermediary and has underwritten the total amount of the transaction consisting of a single tranche of senior bonds with a term of three and a half years, for a total amount of MXN 1.4 billion.

The resources will be used to finance or refinance projects that contribute to the Sustainable Development Goals (SDGs), specifically number 6, which concerns clean water and sanitation, and number 9, which refers to building resilient infrastructure, promoting inclusive and sustainable industrialization and fostering innovation.

DHC developed the Blue Bonds Program with the goal of supplying drinking water to the people living in the municipalities where it operates, primarily for three reasons: the company's commitment to the care of natural resources; the need to strengthen and expand infrastructure to improve access to water; and thirdly, because of the growing demand due to the demographic expansion that is taking place in the region; issues that DHC is strategically anticipating this in its operation.

This issue stands out for being the first blue bond placed in the Mexican market. It achieved a credit rating of HR AA+ HR Ratings I AA+(mex) Fitch Ratings. In addition, it received a Second Party Opinion from HR Ratings based on its green bond methodology. This issue is the first in this category in which BBVA participates, not only in Mexico, but globally, and forms part of the bank's efforts to complement its range of products linked to the Blue Economy, such as the recent launch of the innovative loan linked to water footprint indicators.

Álvaro Vaqueiro, Head of BBVA's Corporate and Investment Banking in Mexico, commented: "This Blue Bond issue is BBVA's first in Mexico and globally. We would like to thank Desarrollos Hidráulicos de Cancún for having chosen us as Joint Placement Intermediary and for allowing us to join them in the achievement of this important operation; with which we reaffirm our commitment to continue innovating and supporting companies that promote sustainable development in Mexico".