Fundación Rafael Dondé placed MXN 1,000 million (USD 54 million) in sustainability-linked notes on the Bolsa Institucional de Valores (BIVA). It is the third issue under its revolving program of up to MXN 3,000 million (USD 163 million). The ticker is DONDE 26L. The book closed on October 13 and settlement is on October 15, 2026.
The terms
- Amount: MXN 1,000 million (USD 54 million), 10 million notes at a face value of MXN 100. The notice does not report an over-allotment or demand. Net proceeds: MXN 983.4 million (USD 54 million).
- Tenor and rate: 1,092 days (about 3 years), maturing on October 11, 2029, at compounded TIIE de Fondeo plus 220 basis points. Interest every 28 days.
- Amortization: a single payment at maturity. From interest period 22, the issuer may redeem early; if it has not met its sustainability target, it pays a 20 basis point premium.
- Indicator: increase in the number of children aged 6 to 12 served by the Módulos Educativos Dondé, under its sustainability-linked bond framework. ESG structuring agent: Casa de Bolsa Banorte.
- Security: unsecured.
- Ratings: HR AA from HR Ratings and AA.mx from Moody’s Local México.
- Placement agents: Actinver Casa de Bolsa, Casa de Bolsa Banorte and Casa de Bolsa Santander. Common representative: Masari Casa de Bolsa.
Fundación Rafael Dondé is a private charitable institution that makes pawn loans and funds education programs. In sustainability-linked notes, the money is not earmarked for projects: the issuer commits to a measurable target and the notes’ terms depend on meeting it. The notice does not detail the use of proceeds.
Why it matters
Sustainability-linked notes open the market to issuers whose business does not lend itself to project-based green or social notes. Dondé paid 220 basis points over three years with an AA rating. The same day, FEFA paid 35 basis points over three years with an AAA rating. The gap reflects rating, size and type of issuer.
For a mid-sized company or a developer, the structure shows that an impact target can be part of a debt issue without changing how the proceeds are used. It does require measurable indicators and external verification.
What to review
- Whether your company has measurable environmental or social indicators that could support a sustainability-linked debt issue.
- What verification and reporting would cost against the benefit in rate or investor access.
- Which penalties or premiums apply if the target is missed, like the early redemption premium Dondé agreed to.
At Borax Capital we negotiate funding with banks, development banks and funds, and structure debt placements so companies reach the market with the documentation investors require.
US dollar amounts converted at Banco de México’s FIX rate of October 13, 2026 (MXN 18.3528 per USD). Source: placement notice for DONDE 26L, Bolsa Institucional de Valores, October 13, 2026. Information from public sources; the mention does not imply any commercial relationship. This content is for information only and is not investment advice or an offer of securities.
This content is for informational purposes only and does not constitute investment advice or an offer of securities.
