Mexico’s ESG Bond Has Skeptics Questioning Do-Good Bona Fides
- 750 million euro issuance was snapped up by eager investors
- But critics question whether bond really promotes social good
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The sustainable bond industry’s push into developing nations is sparking concerns about how sure investors can be that the money is being used for good, with Mexico’s sale the latest to raise eyebrows among skeptics.
The issue has come to the fore as Latin America becomes the new frontier for investors looking to do good at the same time they make money. Mexico issued 750 million euros ($910 million) of sovereign sustainable bonds in September, and the notes have since made their way into funds and indexes focused on securities that are supposed to help make the world a better place.