BBVA Mexico supports FEFA in issuing Mexico’s first Biodiversity Bond

The transaction will boost financing for the agri-food sector and biodiversity conservation, while promoting rural financial inclusion and sustainable productive investment.

BBVA Mexico acted as placement agent for the Special Fund for Agricultural Financing’s (FEFA) issuance of debt securities, totalling MXN 6,29 billion. The transaction included Mexico’s first Biodiversity Bond. Total demand reached MXN 6,52 billion, equivalent to an oversubscription ratio of 1.3x.

The transaction comprised three tranches placed under a flexible allocation structure. FEFA 26-5 was a floating-rate tranche of MXN 3,03 billion with a 1.6-year tenor, priced at a spread of 31 basis points (bps) over the TIIE de Fondeo rate, in line with initial price thoughts (IPTs). FEFA 26-6 was a floating-rate tranche of MXN 1,61 billion with a three-year tenor, priced at a spread of 35 bps over TIIE de Fondeo, also in line with IPTs. FEFA 26-2V, the Biodiversity Bond, was a floating-rate tranche of MXN 1,66 billion with a five-year tenor, priced at a spread of 40 bps over TIIE de Fondeo, 2 bps inside IPTs.

A new instrument to promote sustainability in the agri-food sector

The Biodiversity Bond will channel proceeds towards activities that contribute to the conservation and sustainable use of ecosystems. These include sustainable agriculture, responsible soil management, reducing the use of agrochemicals that are harmful to biodiversity, and innovation through precision agriculture.

The instrument is aligned with FIRA’s framework and has received a Second Party Opinion from S&P Global Ratings under its Shades of Green methodology, developed with support from the Inter-American Development Bank (IDB) and the German development agency GIZ.

"The issuance of Mexico’s first Biodiversity Bond marks an important step forward in the development of the country’s sustainable debt market. At BBVA Mexico, we reaffirm our commitment to supporting FEFA in a transaction that shows how financial strategy can channel resources towards the development of the agri-food sector while also contributing to the conservation of our ecosystems," said Álvaro Vaqueiro Ussel, Head of BBVA CIB in Mexico.

Financial strength and importance to the agri-food sector

FEFA plays a key role in financing Mexico’s agri-food, forestry and rural sectors. In the second quarter of 2026, its net loan portfolio stood at MXN 151,36 billion, its non-performing loan (NPL) ratio was 1.77% and its capitalisation ratio was 44%.

Through its participation in this transaction, BBVA Mexico reaffirms its commitment to developing the domestic debt market and promoting financial instruments that support biodiversity conservation and a more sustainable and resilient economy