Looking to address the difficulties micro-, small- and medium-sized enterprises (MSMEs) in Mexico's agricultural sector have accessing funds, four non-bank financial institutions partnered to participate in a pioneer public joint-issuance of $17.3 million under a Sustainable Bond Framework.

The four financial institutions backing the bond are Credito Especializado (CRESCA), Proaktiva, Servicios y Financiamiento Agrícola (SEFIA) and SFI.

The innovative financial structure, backed by underlying loans from each of the four participating financial institutions, , enabled small-scale lenders to access capital markets, benefiting underserved MSMEs in agriculture.

As a first public issuance of asset-backed securities (ABS) under a joint-issuance format coupled with a sustainable thematic label, this issuance sets a new precedent for financing MSMEs in the country's agribusiness sector.

The Inter-American Development Bank (IDB) Invest acted as lead investor and the issuance had a partial guaranty from Fideicomisos Instituidos en Relación con la Agricultura (FIRA).