Circular 12/2022 — Modifications to Circular 8/2014 (Inclusion of BONDES denominated in national currency at variable interest rates)

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DIARIO OFICIAL Viernes 7 de octubre de 2022 CIRCULAR 12/2022 directed to credit institutions, brokerage houses, investment funds, specialized investment societies for retirement funds, and the National Financial Institution for Agricultural, Rural, Forestry and Fisheries Development, regarding the Modifications to Circular 8/2014 (inclusion of BONDES denominated in national currency at variable interest rates).

A logo appears on the margin, which says: Bank of Mexico.- “2022, Year of Ricardo Flores Magón”.

CIRCULAR 12/2022 TO CREDIT INSTITUTIONS, BROKERAGE HOUSES, INVESTMENT FUNDS, SPECIALIZED INVESTMENT SOCIETIES FOR RETIREMENT FUNDS AND THE NATIONAL FINANCIAL INSTITUTION FOR AGRICULTURAL, RURAL, FORESTRY AND FISHERIES DEVELOPMENT:

SUBJECT: MODIFICATIONS TO CIRCULAR 8/2014 (INCLUSION OF BONDES DENOMINATED IN NATIONAL CURRENCY AT VARIABLE INTEREST RATE)

The Bank of Mexico, with the purpose of continuing to promote the sound development of the financial system, foster the proper functioning of payment systems and protect the interests of the public, has determined it convenient to adjust the Rules for the Swap of Government Securities carried out by the Bank of Mexico on its own behalf, contained in Circular 8/2014, with the objective of including any debt instrument issued by the Federal Government, including those at adjustable rates, for the conduct of government securities swap auctions carried out by this Central Institute, in order to promote flexibility in this type of operation and the development of the fixed income market in Mexico, without submitting these modifications to public consultation, considering that they are provisions through which mechanisms for the implementation of monetary policy are established.

For the above reason, the Bank of Mexico, based on articles 28, paragraphs sixth and seventh, of the Political Constitution of the United Mexican States, 1, 7, fraction I, 8, 14 and 24 of the Bank of Mexico Law, 9 of the Organic Law of Nacional Financiera, 6 of the Organic Law of Sociedad Hipotecaria Federal, 9 of the Organic Law of Banco del Bienestar, 9 of the Organic Law of Banco Nacional de Comercio Exterior, 10 of the Organic Law of Banco Nacional de Obras y Servicios Públicos, 8 of the Organic Law of Banco Nacional del Ejército, Fuerza Aérea y Armada, 19 of the Organic Law of the National Financial Institution for Agricultural, Rural, Forestry and Fisheries Development, 22 of the Law for Transparency and Ordering of Financial Services, 1, 4, first paragraph, 8, paragraphs fourth and eighth, 10, first paragraph, 12, first paragraph, in relation with 19 Bis, fraction V, and 19 Bis 1, fraction XI, 14 Bis, first paragraph, in relation with 17, fraction I, of the Internal Regulations of the Bank of Mexico, as well as 13, fraction II, of the Policies for public consultation of general nature provisions issued by the Bank of Mexico, which grant it the authority to issue provisions through the General Directorate of Central Banking Operations and the General Legal Directorate, respectively, as well as in article Second, fractions VI and X, of the Agreement on the Attachment of Administrative Units of the Bank of Mexico, has resolved to modify articles 1, first paragraph and the definitions of “BONDES”, “CETES”, “DALÍ”, “Banking Business Days”, “INDEVAL”, “Development Banking Institutions”, “Auctions” and “UDIS”, 2, paragraphs second and third, 3, first paragraph, 5, 6, paragraphs first and third, 8, fractions I and III, 9, paragraphs first, third and fourth, 10, paragraphs second, third, fourth and sixth, 11, first paragraph and fraction IV, 12, 13, 14, paragraphs first, second, third, fourth, as well as literals A and B, 15, first paragraph, 16, 18, 19, 20, paragraphs third, fourth and fifth, 22 and Annexes 1, 2 and 3, as well as add the definitions “BONDES G”, “Advanced Electronic Signature”, “PRIMARY SWAP” and “TIIE de Fondeo” to article 1, as well as article 23 of the “Rules for the Swap of Government Securities carried out by the Bank of Mexico on its own behalf”, issued by said Bank through Circular 8/2014, to remain in the following terms:

RULES FOR THE SWAP OF GOVERNMENT SECURITIES CARRIED OUT BY THE BANK OF MEXICO ON ITS OWN BEHALF

“Definitions

October 7, 2022 DIARIO OFICIAL Article 1.- For the purposes of these Rules, the terms used herein, in singular or plural, shall have the meanings indicated below, without prejudice to the different treatment given to similar terms in other regulations:

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BONDES: Bonds for Development issued by the Federal Government of the United Mexican States in the national market, denominated in national currency or UDIS, both at fixed interest rate and at variable interest rate.

BONDES G: Bonds for Development issued by the Federal Government of the United Mexican States in the national market, previously placed, which have been rated by a securities rating institution and an ESG criteria rating institution as bonds aligned with environmental, social and corporate governance criteria in accordance with the reference framework in terms of the “Rules for the celebration of syndicated auctions of government securities aligned with environmental, social and corporate governance criteria” issued by the Bank through Circular 7/2022, published in the Official Journal of the Federation on April 12, 2022, as modified by subsequent resolutions, and which, in turn, comply with the Green Bond Principles, Social Bond Principles and Sustainable Bond Guidelines, in compliance with the Guide for External Reviews of Green, Social and Sustainable Bonds, published by the association of the Swiss Confederation called “International Capital Market Association” (ICMA) or, if applicable, the instruments that replace them, denominated in national currency, at variable interest rate corresponding to TIIE de Fondeo.

CETES: Certificates of the Treasury of the Federation denominated in national currency issued by the Federal Government of the United Mexican States, excluding those issued under programs for restructuring of credits in UDIS (Special CETES).

DALI: the payment system called “System for Deposit, Administration and Settlement of Securities”, administered by INDEVAL.

Banking Business Days: days on which financial entities subject to regulation by the National Banking and Securities Commission are not obliged to close their doors or suspend operations, in terms of the general provisions issued for such effect by said Commission.

Advanced Electronic Signature: that signature which meets the requirements of Advanced or Reliable Electronic Signature referred to in articles 89 and 97 of the Commerce Code, as modified or replaced subsequently.

INDEVAL: S.D. Indeval, Securities Depository Institution, S.A. de C.V.

Development Banking Institutions: National Foreign Trade Bank, S.N.C., Development Banking Institution; National Bank of the Army, Air Force and Navy, S.N.C., Development Banking Institution; Banco del Bienestar, S.N.C., Development Banking Institution; Nacional Financiera, S.N.C., Development Banking Institution; Federal Mortgage Society, S.N.C., Development Banking Institution, and National Bank of Public Works and Services, S.N.C., Development Banking Institution. For the purposes of these Rules, it will be understood that the National Financial Institution for Agricultural, Rural, Forestry and Fisheries Development is part of this definition.

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PRIMARY SWAP: The Bank of Mexico Swap Auction System that allows persons designated in these Rules to submit bids through SIAC-BANXICO, in accordance with the contract celebrated with the Bank.

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Auctions: auctions for the swap of Government Securities provided for in these Rules.

DIARIO OFICIAL Viernes 7 de octubre de 2022

TIIE de Fondeo: Interbank Equilibrium Interest Rate in national currency, for a term of one Banking Business Day, which publishes the Bank in accordance with what is provided in Section IV of Chapter IV of Title Three of the “Provisions applicable to the operations of credit institutions, multiple-object financial societies regulated that maintain patrimonial links with credit institutions and the National Financial Institution for Agricultural, Rural, Forestry and Fisheries Development”, issued by the Bank through Circular 3/2012, including its modifications through subsequent resolutions or, if applicable, the instrument that replaces it.

UDIS: the unit of account whose value in national currency publishes the Bank in the Official Journal of the Federation, in accordance with articles Third of the “Decree establishing obligations that may be denominated in investment units and reforming and adding various provisions of the Fiscal Code of the Federation and the Income Tax Law”, published in the Official Journal of the Federation on April 1, 1995 and 20 Ter of the Fiscal Code of the Federation.

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“Bidders

Article 2.- …

I. to V. …

The persons referred to must present all their bids on their own account, except for: i) investment funds regulated by the Investment Funds Law, who will present their bids through the respective fund operating companies that provide them with asset management services, and ii) specialized investment societies for retirement funds regulated by the Savings Systems for Retirement Law, who will present their bids through the respective retirement fund administrators that manage and operate them.

The Bank may reject or invalidate bids presented when, in its judgment, they fail to comply with applicable provisions or do not conform to sound uses or market practices.”

“Auctions Calls

Article 3.- The Bank will make available to the persons referred to in article 2 of these Rules the calls for Auctions up to one Banking Business Day before the date of the respective Auction, through the internet electronic page identified with the domain name: www.banxico.org.mx, the PRIMARY SWAP system or any other electronic, computing or telecommunications medium authorized for this effect by the Bank, unless the Bank itself announces another date or time for a particular call.

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“Article 5.- The Bank will inform bidders of the CETES rates or BONDES prices offered for swap, through the PRIMARY SWAP system, the aforementioned internet electronic page identified with the domain name: www.banxico.org.mx, or through any other electronic, computing or telecommunications medium authorized for this effect by the Bank.

References to rates in these Rules correspond to discount rates; and references to prices correspond to clean prices; that is, those that do not include accrued but unpaid interest, rounded to ten-thousandths.”

“Types of Bids

Article 6.- For the case of Auctions referred to in subsections a) and b) of article 4 of these Rules, bids can only be competitive and must indicate: the issuance key, the CETE rate or the BONDE price, as applicable, and the amount that the bidder is willing to deliver or receive and the key of the CETE or BONDE desired to be delivered or received as a result of the swap, as the case may be.

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The Bank may determine, for the case of any of the Auctions referred to in subsections a) and b) of article 4 of these Rules, the minimum or maximum rate or price at which it is willing to assign the Government Securities subject to the swap. In these cases, bids with rates or prices lower or higher, as applicable, will not be attended.

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“Submission of Bids

Article 8.- …

I. The persons indicated in the previous article 2 must present their bids through the PRIMARY SWAP system on the date and time indicated in the corresponding calls.

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II. …

III. In case bids cannot be submitted through the PRIMARY SWAP system, or when the Bank so determines, bidders may submit them, exceptionally, through any other electronic, computing or telecommunications medium authorized for this effect by said Bank, in the times determined in the respective call, in which case they must confirm them by written notice addressed to the National Operations Management of the Bank presented, if applicable, in a closed envelope, no later than 17:00:00 hours of the same Banking Business Day of the Auction, using the corresponding model among those attached to these Rules as Annex 1 and accompanying it with a presentation letter, as applicable, for each of the Government Securities involved.

The documents mentioned in the previous paragraph must be signed with handwritten signature or Advanced Electronic Signature by the same representatives duly authorized by the bidder. Additionally, said documents must show the knowledge of signatures granted by the Bank, in the case of handwritten signatures, for which said signatures must be previously registered in said Bank. The data of the Advanced Electronic Signature referred to in this article must be verifiable through the corresponding digital certificate issued by the Tax Administration Service.”

“Effects of Bids

Article 9.- Bids presented to the Bank in terms of article 8 of these Rules will produce the broadest effects allowed by law and imply the bidder’s acceptance of all and each of these Rules, as well as the terms and conditions established in the call in which the Bank communicates the particular characteristics of the Auction in which participation occurs.

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The Bank may invalidate requests or bids received in accordance with these Rules if they do not conform to these or what is stated in the corresponding call; are not clearly legible; have amendments or corrections, or are incomplete or, in some way, incorrect.

Likewise, the Bank may reject bids corresponding to one or more issuances of the respective Government Securities if, in its judgment, the persons presenting them fail to comply with these Rules or other applicable provisions, do not conform to sound uses or securities market practices, or their participation in the respective Auctions, due to their characteristics, could produce inconvenient effects for the sound development of the securities market in particular or the financial system in general.

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“Assignment Criteria

Article 10.- …

DIARIO OFICIAL Viernes 7 de octubre de 2022

In single-rate or single-price Auctions, the rate or price at which the Government Securities involved will be assigned will be that corresponding to the last bid receiving assignment, even if this is partially attended in its amount.

In multi-rate or multi-price Auctions, bids will be attended at the requested rates or prices.

In fixed-rate or fixed-price Auctions, bids will be attended at the rate or price determined by the Bank and up to the amount indicated in the bid itself.

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The amounts of Government Securities to be delivered or received by each bidder whose bid has assignment will be at nominal value, rounded to thousands of pesos or UDIS.”

“Common Provisions

Article 11.- Auctions, additionally, will be subject to the following:

I. to III. …

IV. The Bank may declare any Auction totally void, in which case no bid will receive assignment of Government Securities.”

“Report of Auction Results

Article 12.- The Bank will make available to bidders, through the internet electronic page of said Bank referred to in article 5 above or through any other electronic, computing or telecommunications medium authorized for this effect by the Bank, the general results of Auctions, starting from sixty minutes after the applicable deadline for the submission of bids for the Auction in question. Information corresponding to the general results of an Auction will remain available to bidders through the mentioned medium until results of a new Auction are incorporated in the terms previously stated.

The Bank will inform each bidder individually, through the PRIMARY SWAP system or through any other electronic, computing or telecommunications medium authorized for this effect by the Bank, starting from sixty minutes after the applicable deadline for the submission of bids for the Auction in question, the quantity of Government Securities that, if applicable, have been assigned to them and the quantity of Government Securities that, if applicable, they will deliver.”

“Reservation of Ownership

Article 13.- The Bank, by virtue of what is provided by articles 2312 and 2331 of the Federal Civil Code, reserves ownership of the Government Securities it must deliver as a result of the swap until the moment it receives from the bidder the Government Securities corresponding.”

“Calculation of Amount for Settlement

Article 14.- Settlement of swap operations of Government Securities referred to in these Rules will be carried out through DALI in the terms established in the internal regulations of INDEVAL, on the date fixed in the corresponding call. On the day of settlement, the Bank will instruct INDEVAL to:

I. and II. …

The persons referred to in fractions III, IV and V of article 2 of these Rules must receive and deliver the corresponding Government Securities through a Credit Institution or brokerage house with which they agree to carry out said operation.

For the purposes of the foregoing, all Government Securities that bidders who have received assignment are obligated to deliver must be deposited in the corresponding securities accounts, before the closing of DALI operations on the day of the corresponding settlement.

In case the total value of Government Securities to be delivered or received by the bidder is greater or less than the total of Government Securities to be received or delivered in the swap, the difference in favor or charge of the bidders mentioned in fractions I and II of article 2, as applicable, must be paid on the day of settlement of the swap by credit or debit in the national currency account that the Bank holds for them.

Settlement referred to in the first paragraph of this article will be carried out as follows:

A. Regarding BONDES with fixed interest rate, settlement must be made by adding to the unit price, accrued but unpaid interest, from and including the date of its issuance or last interest payment, as applicable, up to and excluding the settlement date, according to the following formula:

(1)

Where:

Accrued interest in national currency or UDIS, as applicable. Nominal value of the BONDE in national currency or UDIS, as applicable. Natural days elapsed between the date of issuance or last interest payment, as applicable, and the settlement date. Annual interest rate of the BONDE, expressed in annual percentage terms and rounded to two decimals.

B. Regarding BONDES with variable interest rate, settlement must be made by adding to the unit price, accrued but unpaid interest, from and including the date of its issuance or last interest payment, as applicable, up to and excluding the settlement date, according to the following formula:

(2)

Where:

Accrued interest in national currency. Nominal value of the BONDE in national currency. Natural days elapsed between the date of issuance or last interest payment, as applicable, and the settlement date. Annual accrued interest rate of the BONDE, expressed in annual percentage terms and rounded to two decimals calculated according to the following formula:

(3)

Where:

To each of the natural days between the date of issuance of the BONDE or the last interest payment and the settlement date, values from 1 to .

DIARIO OFICIAL Friday, October 7, 2022

Operator that means performing the multiplication of the factors within parentheses.

For BONDES D: At the annual interest rate, expressed in percentage terms with rounding to two decimal places, at which Credit Institutions and brokerage houses carry out operations of purchase and sale and repurchase agreements for one Banking Business Day with bank securities, known in the market as the "Weighted Bank Funding Rate," calculated and made known on day i by the Bank, in terms of the publication in the Official Gazette of the Federation of July 31, 2000, through its internet website www.banxico.org.mx or through any other electronic, computing, or telecommunications medium authorized for this purpose by the Bank itself. In the latter case, the Bank will promptly inform the medium through which this rate will be disseminated.

In the case of those days that are not Banking Business Days, for the calculation of the referred interest rate, the rate made known on the immediately preceding Banking Business Day that corresponds shall be used.

In the event that the rate referred to in the element cannot be determined or ceases to be made known, the Bank will request in writing from two societies that administer systems to facilitate operations with securities (brokerage houses) selected by proposal from the Mexican Bank Association, A.C., the average of the purchase and sale and repurchase agreement operations for one Banking Business Day with bank securities. The Bank will calculate the average of the two interest rates thus obtained for its determination and will make the result known in the form and means mentioned, as the interest rate substitute for the one referred to in the definition of the previous element.

For BONDES F and BONDES G: At the annual interest rate, expressed in percentage terms with rounding to hundredths, based on wholesale funding operations in pesos carried out by Credit Institutions and brokerage houses through repurchase agreement operations for one Banking Business Day with securities issued by the Federal Government, the Institute for the Protection of Bank Savings (IPAB) or the Bank, known in the market as "TIIE de Fondeo," calculated and made known on day by the Bank, through its internet website www.banxico.org.mx in terms of what is established in the "Provisions applicable to the operations of credit institutions, multiple-object financial societies regulated that maintain patrimonial links with credit institutions and the National Financial Development Company for Agriculture, Rural, Forestry and Fisheries," issued by the Bank through Circular 3/2012, published in the Official Gazette of the Federation of March 2, 2012, as they may be modified by subsequent resolutions, or through any other electronic, computing, or telecommunications medium authorized for this purpose by the Bank itself. In the latter case, the Bank will promptly inform the medium through which this rate will be disseminated.

In the case of those days that are not Banking Business Days, for the calculation of the referred interest rate, the rate made known on the immediately preceding Banking Business Day that corresponds shall be used.

For each bid assigned within the corresponding call for bids on day , bidders will receive or deliver the quantity of Government Securities assigned in the swap and will deliver to the Bank or receive from it the quantity of Government Securities in swap of series j requested. For the purposes of what is stated in this paragraph, it will correspond to the result of applying the following formula:

Friday, October 7, 2022 DIARIO OFICIAL (4)

Where: Price assigned for BONDES or CETES that bidders request or offer in the call for bids (the price of CETES must be rounded to seven decimal places and that of BONDES to hundred-thousandths). Quantity of accrued but unpaid interest of the BONDES offered in swap by bidders in the call for bids and calculated according to the formula that results applicable among those indicated in this article (the accrued interest of BONDES must be rounded to twelve decimal places). Not applicable in the case of CETES. Quantity of BONDES or CETES to receive or deliver by bidders, as applicable, for each bid assigned in the call for bids Price for BONDES or CETES of series that the Bank receives or offers in the call for bids (the price of CETES must be rounded to seven decimal places and that of BONDES to hundred-thousandths). Quantity of accrued but unpaid interest of the BONDES of series received in swap by the Bank and calculated according to the formula that results applicable among those indicated in this article. Quantity of BONDES or CETES of series to deliver or receive by bidders for each bid assigned in the call for bids . It will be truncated to the nearest smaller integer.”

“Default Article 15.- In the event that a bidder does not have the entirety of the Government Securities that must be delivered in the designated account before the closing of operations of DALI in accordance with what is stated in the previous article, the Bank may, without the need for a judicial declaration, rescind the swap for the missing amount, for which the corresponding credits and debits will not be made in the securities accounts in DALI. …”

“Publication of the Characteristics of the Auctions Article 16.- For information of the market, the Bank will make known to the general public the characteristics of the Auctions, through the internet website with the domain name: www.banxico.org.mx or through any other electronic, computing, or telecommunications medium authorized for this purpose by the Bank.”

“Fortuitous Event or Force Majeure Article 18.- In the event that, due to fortuitous event or force majeure, the Bank's internet website referred to in Article 5 above or the PRIMARIA PERMUTA system cannot be used to make known the calls for bids, carry out the Auctions, or inform the results of these, the Bank will promptly communicate the applicable procedure to carry out the Auctions, make known such calls for bids, or the results of the corresponding Auctions.”

“Electronic Signature Article 19.- The access, identification, and, where applicable, operation keys established for the use of the PRIMARIA PERMUTA system or any other electronic, computing, or telecommunications medium, that are used for the purposes of these Rules, will substitute the autograph signature for one of an electronic nature, for which the documentary or technical records in which they appear will have full legal validity and will produce the same effects that the laws grant to documents signed by the parties and, consequently, will have equal probative value.”

“Payment of Government Securities Article 20.- …

DIARIO OFICIAL Friday, October 7, 2022 The persons referred to in fractions III, IV, and V of the first paragraph of Article 2 must deliver and receive the corresponding Government Securities through a Credit Institution or brokerage house with which they agree to carry out the operations referred to in these Rules, who must grant its authorization to the Bank, prepared in terms of the model contained in Annex 3, for the same effects indicated in the first paragraph of this present article. The authorizations that Credit Institutions or brokerage houses deliver to the Operations Management Department of the Bank for the effects indicated in this present article must be signed by whoever has the faculties to exercise acts of dominion in the name and representation of the Credit Institution or brokerage house in question. To accredit the referred faculties, the Credit Institution or brokerage house in question must present, to the Operations Instrumentation Department of the Bank, certified and simple copies of the public deed in which the granting of the referred power is recorded, as well as a simple copy of the official identification of the attorney or attorneys. The documentation that must be sent to the Bank in accordance with what is established in this present article must be delivered with an advance of, at least, five Banking Business Days to the date on which it is intended to participate in the Auctions.”

“Authorization of other persons to submit bids Article 22.- The Bank may authorize other financial entities different from those indicated in fractions I to IV of Article 2 of these Rules to submit bids in the Auctions in accordance with these same Rules. For these effects, the entities interested in participating as bidders must present their request to the Bank, through the Central Bank Banking Authorizations and Consultations Department of the Bank of Mexico. The Bank may, at any time, limit or revoke, where applicable, the authorization it grants in accordance with this numeral.”

“Obligation to Conclude Contracts with the Bank Article 23.- To participate in the operations referred to by these Rules, bidders must conclude the respective contract with the Bank, for which they must provide it, through the Operations Instrumentation Department, the name of the person(s) that intend(s) to sign it, attaching a simple copy of their official identification(s) and a certified and simple copy of the public deed in which the granting of faculties to exercise acts of dominion is recorded. The referred documentation must be delivered with, at least, five Banking Business Days of advance to the date on which it is intended to participate in the Auctions for the first time.”

“ANNEX 1 MODEL OF REQUEST TO PARTICIPATE IN THE AUCTION FOR THE SWAP OF CERTIFICATES OF THE TREASURY OF THE FEDERATION (CETES) CARRIED OUT BY THE BANK OF MEXICO ON ITS OWN ACCOUNT BANK OF MEXICO NATIONAL OPERATIONS DEPARTMENT 5 de Mayo Avenue number 6, Centro Neighborhood, C.P. 06000, Mexico City, Present. REQUEST ON OWN ACCOUNT Mexico City, on _____ of ___________________ of _________. The entity indicated below presents the following bid to participate in the auction to which this refers, in conformity and for the effects of the “Rules for the swap of government securities carried out by the Bank of Mexico on its own account,” issued by the Bank itself through Circular 8/2014, as they may be modified. Bidder Name: ________________________________________________________________

Friday, October 7, 2022 DIARIO OFICIAL Bidder Key at the Bank of Mexico: ____________________________________________________ Key of the CETE issuance for which bids are presented: ______________________ (BIAAMMDD) Term in days of the CETE issuance for which bids are presented: __________ days BIDS: Discount Rate Total Amount Issuance to deliver or receive in the swap _________. _______ __________ thousands of pesos __________________ _________. _______ __________ thousands of pesos __________________ _________. _______ __________ thousands of pesos __________________ The RATES must be expressed in annual percentage terms with TWO decimal places. The cited bids are mandatory and irrevocable; they will produce the broadest effects that correspond in law, and imply our acceptance to all and each of the “Rules for the swap of government securities carried out by the Bank of Mexico on its own account” in force, as well as to the terms and conditions of the call for bids of date ______ of ______________________ of ______. Sincerely, 1 (Bidder Name) (Name, position, and signature of officials) NOTE: Unused spaces must be cancelled. 1 This document must show the signature knowledge granted by the Bank of Mexico, for which said signatures must be registered previously in the Bank of Mexico itself. MODEL OF REQUEST TO PARTICIPATE IN THE AUCTION FOR THE SWAP OF DEVELOPMENT BONDS OF THE FEDERAL GOVERNMENT WITH FIXED INTEREST RATE (BONDES M) CARRIED OUT BY THE BANK OF MEXICO ON ITS OWN ACCOUNT BANK OF MEXICO NATIONAL OPERATIONS DEPARTMENT 5 de Mayo Avenue number 6, Centro Neighborhood, C.P. 06000, Mexico City, Present. REQUEST ON OWN ACCOUNT Mexico City, on _____ of ___________________ of _________. The entity indicated below presents the following bid to participate in the auction to which this refers, in conformity and for the effects of the “Rules for the swap of government securities carried out by the Bank of Mexico on its own account,” issued by the Bank itself through Circular 8/2014, as they may be modified. Bidder Name: ________________________________________________________________

DIARIO OFICIAL Friday, October 7, 2022 Bidder Key at the Bank of Mexico: ____________________________________________________ Key of the BONDE M issuance for which bids are presented: __________________ (M AAMMDD) Term in days of the BONDE M issuance for which bids are presented: __________ days BIDS: Clean Price Total Amount Issuance to deliver or receive in the swap ________. _______ __________ thousands of pesos __________________ ________. _______ __________ thousands of pesos __________________ ________. _______ __________ thousands of pesos __________________ The prices must be expressed up to FIVE decimal places. The prices are without including accrued interest. The cited bids are mandatory and irrevocable; they will produce the broadest effects that correspond in law, and imply our acceptance to all and each of the “Rules for the swap of government securities carried out by the Bank of Mexico on its own account” in force, as well as to the terms and conditions of the call for bids of date ______ of ______________________ of ______. Sincerely, 1 (Bidder Name) (Name, position, and signature of authorized officials) NOTE: Unused spaces must be cancelled. 1 This document must show the signature knowledge granted by the Bank of Mexico, for which said signatures must be registered previously in the Bank of Mexico itself. MODEL OF REQUEST TO PARTICIPATE IN THE AUCTION FOR THE SWAP OF DEVELOPMENT BONDS OF THE FEDERAL GOVERNMENT WITH REVISABLE INTEREST RATE (BONDES D, BONDES F AND BONDES G) CARRIED OUT BY THE BANK OF MEXICO ON ITS OWN ACCOUNT BANK OF MEXICO NATIONAL OPERATIONS DEPARTMENT 5 de Mayo Avenue number 6, Centro Neighborhood, C.P. 06000, Mexico City, Present. REQUEST ON OWN ACCOUNT Mexico City, on _____ of ___________________ of _________. The entity indicated below presents the following bid to participate in the auction to which this refers, in conformity and for the effects of the “Rules for the swap of government securities carried out by the Bank of Mexico on its own account,” issued by the Bank itself through Circular 8/2014, as they may be modified. Bidder Name: ________________________________________________________________

Friday, October 7, 2022 DIARIO OFICIAL Bidder Key at the Bank of Mexico: ____________________________________________________ Key of the BONDE issuance for which bids are presented: ____________________ (LDAAMMDD)/ (LFAAMMDD) / (LGAAMMDD) Term in days of the BONDE issuance for which bids are presented: __________ days BIDS: Clean Price Total Amount Issuance to deliver or receive in the swap ________. _______ __________ thousands of pesos __________________ ________. _______ __________ thousands of pesos __________________ ________. _______ __________ thousands of pesos __________________ The prices must be expressed up to FIVE decimal places. The prices are without including accrued interest. The cited bids are mandatory and irrevocable; they will produce the broadest effects that correspond in law, and imply our acceptance to all and each of the “Rules for the swap of government securities carried out by the Bank of Mexico on its own account” in force, as well as to the terms and conditions of the call for bids of date ______ of ______________________ of ______. Sincerely, 1 (Bidder Name) (Name, position, and signature of authorized officials) NOTE: Unused spaces must be cancelled. 1 This document must show the signature knowledge granted by the Bank of Mexico, for which said signatures must be registered previously in the Bank of Mexico itself. MODEL OF REQUEST TO PARTICIPATE IN THE AUCTION FOR THE SWAP OF DEVELOPMENT BONDS OF THE FEDERAL GOVERNMENT DENOMINATED IN INVESTMENT UNITS (UDIBONOS) CARRIED OUT BY THE BANK OF MEXICO ON ITS OWN ACCOUNT BANK OF MEXICO NATIONAL OPERATIONS DEPARTMENT 5 de Mayo Avenue number 6, Centro Neighborhood, C.P. 06000, Mexico City, Present. REQUEST ON OWN ACCOUNT Mexico City, on _____ of ___________________ of _________. The entity indicated below presents the following bid to participate in the auction to which this refers, in conformity and for the effects of the “Rules for the swap of government securities carried out by the Bank of Mexico on its own account,” issued by the Bank itself through Circular 8/2014, as they may be modified.

DIARIO OFICIAL Friday, October 7, 2022 Bidder Name: ________________________________________________________________ Bidder Key at the Bank of Mexico: ____________________________________________________ Key of the UDIBONO issuance for which bids are presented: ___________________ (SAAMMDD) Term in days of the UDIBONO issuance for which bids are presented: __________ days BIDS: Clean Price Total Amount Issuance to deliver or receive in the swap ________. _______ __________ thousands of UDIS __________________ ________. _______ __________ thousands of UDIS __________________ ________. _______ __________ thousands of UDIS __________________ The prices must be expressed up to FIVE decimal places. The prices are without including accrued interest. The cited bids are mandatory and irrevocable; they will produce the broadest effects that correspond in law, and imply our acceptance to all and each of the “Rules for the swap of government securities carried out by the Bank of Mexico on its own account” in force, as well as to the terms and conditions of the call for bids of date ______ of ______________________ of ______. Sincerely, 1 (Bidder Name) (Name, position, and signature of authorized officials) NOTE: Unused spaces must be cancelled. 1 This document must show the signature knowledge granted by the Bank of Mexico, for which said signatures must be registered previously in the Bank of Mexico itself.”

“ANNEX 2 MODEL OF AUTHORIZATION IN FAVOR OF THE BANK OF MEXICO TO CARRY OUT DEBITS AND CREDITS IN THE ACCOUNTS OF CREDIT INSTITUTIONS AND BROKERAGE HOUSES THAT SUBMIT BIDS (LETTERHEAD OF THE CREDIT INSTITUTION OR BROKERAGE HOUSE) Mexico City, on _____ of ___________________ of _________. BANK OF MEXICO NATIONAL OPERATIONS DEPARTMENT 5 de Mayo Avenue number 6, Centro Neighborhood, C.P. 06000, Mexico City, Present. The entity named (FULL NAME OF THE CREDIT INSTITUTION OR BROKERAGE HOUSE) hereby authorizes and instructs irrevocably the Bank of Mexico to carry out the necessary debits and credits in the securities account that the S.D. INDEVAL Securities Depository Institution, S.A. de C.V., maintains for this same entity, derived from the settlement of the swap operations of CETES or BONDES celebrated by this entity under the “Rules for the swap of government securities carried out by the Bank of Mexico on its own account,” issued by the Bank itself through Circular 8/2014, as they may be modified. For such effects, this present entity grants its consent for the Bank of Mexico to send to said securities depository institution the corresponding instructions so that the respective records are made. Additionally, this entity authorizes and instructs irrevocably the Bank of Mexico to carry out debits and credits in the national currency account that the Bank itself maintains for it, up to the amounts of the cash differences resulting in favor or against this entity derived from the swap operations mentioned in the previous paragraph, as well as for any other amount that this society must cover by virtue of any default to what is established in the aforementioned Rules. Finally, we make known to you that the authorizations and instructions referred to in this present document can only be modified or revoked through written communication addressed to that Central Bank presented with, at least, one banking business day of advance to the date on which the respective modification or revocation is intended to take effect. It being understood that the modification or revocation will not be applicable with respect to the debits and credits resulting from the bids presented by this society prior to when such communication takes effect. Sincerely, (NAME OF THE CREDIT INSTITUTION OR BROKERAGE HOUSE) (Name, position, and signature of person(s) with faculties to exercise acts of dominion) C.c.p. : S.D. INDEVAL Securities Depository Institution, S.A. de C.V. For your information.”

“ANNEX 3 MODEL OF AUTHORIZATION IN FAVOR OF THE BANK OF MEXICO TO CARRY OUT DEBITS AND CREDITS IN THE ACCOUNTS OF A CREDIT INSTITUTION OR BROKERAGE HOUSE ON BEHALF OF ANOTHER BIDDER (LETTERHEAD OF THE CREDIT INSTITUTION OR BROKERAGE HOUSE) Mexico City, on _____ of ___________________ of _________. BANK OF MEXICO NATIONAL OPERATIONS DEPARTMENT 5 de Mayo Avenue number 6, Centro Neighborhood, C.P. 06000, Mexico City, Present. The entity named (NAME OF THE CREDIT INSTITUTION OR BROKERAGE HOUSE) hereby authorizes and instructs irrevocably the Bank of Mexico to carry out the necessary debits and credits in the securities account that the S.D. INDEVAL Securities Depository Institution, S.A. de C.V., maintains for this same entity, derived from the settlement of the swap operations of CETES or BONDES under the “Rules for the swap of government securities carried out by the Bank of Mexico on its own account,” issued by the Bank itself through Circular 8/2014, as they may be modified, and that must be delivered and received by (NAME OF THE BIDDER). For such effects, this present entity

OFFICIAL GAZETTE Friday, October 7, 2022

grants its consent for the Central Bank to send to said institution for the deposit of securities the corresponding instructions so that the respective records may be made.

Additionally, this entity authorizes and instructs the Bank of Mexico irrevocably to make charges and credits to the national currency account that the Bank holds for it, up to the amounts of the cash differences resulting in favor of or against (NAME OF THE BIDDER) derived from the swap operations mentioned in the previous paragraph, as well as for any other amount that (NAME OF THE BIDDER) must cover by virtue of any non-compliance with the provisions of the aforementioned Rules.

Finally, we inform you that the authorizations and instructions referred to in this document may only be modified or revoked through written communication addressed to this Central Bank presented at least one banking day in advance of the date on which the respective modification or revocation is intended to take effect. It being understood that the modification or revocation will not apply with respect to charges and credits resulting from bids submitted by (NAME OF THE BIDDER) prior to such communication taking effect.

Sincerely,

(NAME OF THE CREDIT INSTITUTION OR SECURITIES HOUSE)

(Name, position, and signature of person(s) with authority to exercise acts of dominion)

C.c.p. : S.D. INDEVAL Securities Deposit Institution, S.A. de C.V. For your information.

C.c.p. : (NAME OF THE BIDDER). For your information.

TRANSITORY PROVISIONS

FIRST. This Circular shall enter into force the day following its publication in the Official Gazette of the Federation, with the exception of what is provided in the following SECOND transitory provision.

SECOND.- The provisions of Article 23 of the Rules for the swap of government securities carried out by the Bank of Mexico on its own account shall enter into force on November 10, 2022.

In order to carry out the formalization of the contract referred to in the aforementioned Article 23 before the date indicated in this transitory rule, the persons referred to in Article 2 of the aforementioned Rules who are interested in participating in the auctions must send, no later than October 10, 2022, to the Operations Instrumentation Management of the Bank of Mexico, located at Avenida 5 de Mayo number 18, Centro neighborhood, Cuauhtémoc Territorial Demarcation, postal code 06000, Mexico City, the documentation mentioned in the aforementioned Article 23.

Mexico City, September 28, 2022.- BANK OF MEXICO: General Director of Central Banking Operations, Gerardo Israel García López.- Rubric.- General Legal Director, Luis Urrutia Corral.- Rubric.

For any inquiries regarding the content of this Circular, the Bank of Mexico is at your disposal through the Central Banking Authorizations and Sanctions Directorate at telephone (55) 5237-2000 extension 3200.