On September 15, 2020, Mexico became the first country in the world to inaugurate sustainable financing program for the achievement of Sustainable Development Goals (SDGs) by issuing a seven-year Sovereign SDGs Bond worth USD 890 million under its new “SDG Sovereign Bond Framework” developed with investment bank Natixis, located in Paris, France.
- This transaction allows Mexico to expand its investor base by accessing international funds working towards sustainable economic development.
- Notably, the demand for these bonds reached approximately US$5.70 billion, equivalent to 6.4 times the allocated amount with a participation of 267 global investment firms.
Key Points:
-This issue will aid the Mexican Government in three ways viz. strengthens budget transparency, increases earmarked spending for sustainable development programs, and contributes to the development of the local and international capital markets aimed at development finance.
-The Mexico government has invited the United Nations Development Programme (UNDP) for partnership in the initiative.
-UNDP has already collaborated on Mexico’s initiative to map its federal budget against the SDGs.
What are Sustainable Development Goals (SDGs)?
Also known as Global Goals, 17 SDGs were adopted by all UN member states i.e. 195 in 2015 at the twenty-first session of the Conference of the Parties (COP-21) in Paris, France by agreeing on the “2030 Agenda for Sustainable Development” on the pledge “Leave No One Behind”. The objective behind these goals is to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030.
- These SDGs replaced the Millennium Development Goals (MDGs) initiated in 2000 to tackle the indignity of poverty. The 17 SDGs Goal are as follows:
| 1: No Poverty 2: Zero Hunger 3: Good Health and Well-being 4: Quality Education 5: Gender Equality 6: Clean Water and Sanitation 7: Affordable and Clean Energy 8: Decent Work and Economic Growth 9: Industry, Innovation and Infrastructure
| 10: Reduced Inequality 11: Sustainable Cities and Communities 12: Responsible Consumption and Production 13: Climate Action 14: Life Below Water 15: Life on Land 16: Peace and Justice Strong Institutions 17: Partnerships to achieve the Goal
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Recent Related News:
- On June 26, 2020, the Government notified the new Floating Rate Savings Bonds (FRSB), 2020 (Taxable) Scheme in place of 7.75% Savings (Taxable) Bonds, 2018, with effect from July 1, 2020. The 7.75% Savings (Taxable) Bonds, 2018 Scheme was ceased for subscription from the close of banking business on May 28, 2020.
- In accordance with the “Sustainable Development Report 2020- The Sustainable Development Goals and Covid-19”, comprising of SDG index 2020, India ranked at 117th position with a score of 61.92 is facing major challenges in 10 of the 17 SDGs including zero hunger, good health, gender inequality among others. The index has been topped by Sweden.
About United Nations Development Programme (UNDP)
Administrator– Achim Steiner
Headquarter– New York, United States (US)
About Mexico:
Capital– Mexico City
Currency– Mexican peso
President– Andres Manuel Lopez Obrador
