Mexico City, August 30th, 2021.
Last August 18th, 2021, the SHCP announced in the Press Release No. 049, the creation of the new Development Bonds of the Federal Government, which will be referenced to the Equilibrium Interbank Interest Rate (Tasa de Interés Interbancaria de Equilibrio de Fondeo) (“TIIE”) for one-business-day Funding, which will be named BONDES F.
The Federal Government has referenced in this way the BONDES F arising from the fact that (i) the TIIE for one-business-day Funding is published daily, and (ii) it complies with the criteria to be considered as a reference interest rate close to risk-free; complying in this way with the international standards and be in line with international benchmark interest rate reforms.
The BONDES F will substitute the current BONDES D starting from the first auction of the fourth quarter of 2021, to be performed in October. In this regard, the SHCP will announce the early liquidation of BONDES D through swap transactions, looking to promote the liquidity of the BONDES F market.
Additionally, the BONDES F will pay coupons with the same periodicity as the current BONDES D and with similar maturity dates, keeping the same provisions for the operation as those of the BONDES D.
This action is part of the Federal Government’s effort to deepen the market referenced to the TIIE for Funding, seeking to promote the adoption and use of this interest rate.
Lawyers of the banking and financial practice of our Firm will be delighted to provide you with further information regarding the content of this informative note.
S I N C E R E L Y,
Miguel Ángel Peralta