Circular 2/2024 — Modifications to Circular 2/2011 (Inclusion of BONDES G and BONOS MS)

128 OFFICIAL GAZETTE Thursday, February 15, 2024 BANK OF MEXICO CIRCULAR 2/2024, addressed to credit institutions, brokerage houses, investment funds, and specialized retirement fund investment companies, regarding Modifications to Circular 2/2011 (inclusion of BONDES G and BONOS MS).

At the margin, a logo that says: Bank of Mexico.- "2024, Year of Felipe Carrillo Puerto, Meritorious of the Proletariat, Revolutionary and Defender of the Mayab".

CIRCULAR 2/2024
TO CREDIT INSTITUTIONS, BROKERAGE HOUSES, INVESTMENT FUNDS, AND SPECIALIZED RETIREMENT FUND INVESTMENT COMPANIES:
SUBJECT: MODIFICATIONS TO CIRCULAR 2/2011 (INCLUSION OF BONDES G AND BONOS MS)

The Bank of Mexico, in its capacity as the financial agent of the Federal Government and with the purpose of continuing to promote the sound development of the financial system, in order to follow up on the actions foreseen in the National Strategy for the Implementation of the 2030 Agenda, systematized and integrated by the Head of the Office of the Presidency, as well as what is contemplated in the National Development Plan 2019-2024, to comply with the Sustainable Development Goals included in the 2030 Agenda approved by the United Nations General Assembly and to incentivize sustainable investments in national territory, considers it convenient to adapt the “Rules for the Swap of Government Securities”, in order to include the debt instruments issued by the Federal Government denominated in national currency, at fixed and variable interest rates, aligned with environmental, social, and corporate governance criteria, so that such securities can be subject to the swap operations provided for in said Rules.

For the above, based on articles 28, paragraphs sixth and seventh, of the Political Constitution of the United Mexican States, 1, 3, fraction III, 7, fraction I, 8, 10, 12 and 14 of the Bank of Mexico Law, 22 of the Law for the Transparency and Ordering of Financial Services, 1, 4, first paragraph, 8, paragraphs fourth and eighth, 10, first paragraph, 12, first paragraph, in relation to 19 Bis, fractions II and V, and 17, fraction I, of the Internal Regulations of the Bank of Mexico, which grant it the authority to issue provisions through the General Directorate of Central Bank Operations and the Directorate of Central Bank Regulations, respectively, as well as Second, fractions VI and X, of the Agreement on the Affiliation of the Administrative Units of the Bank of Mexico, has resolved to modify the first paragraph and the definitions of BONDES, DALI, and PRIMARIA PERMUTA, the sections 2, first paragraph, 4, first paragraph, 5.31, paragraphs first, third, and fourth, 5.41, third paragraph, 6, second paragraph, 7, 8.2, 8.3, second paragraph, 8.4, first paragraph, 8.5, 9.3, 9.4, paragraphs second, third, fourth, and fifth, and the Appendices 1, 1 BIS, 2, 3, 4, and 5, as well as to add the definitions of BONDES G, BONOS MS, Advanced Electronic Signature, SIAC-BANXICO, TIIE de Fondeo, and section 9.7, of the “Rules for the Swap of Government Securities”, contained in Circular 2/2011, to remain in the following terms:

RULES FOR THE SWAP OF GOVERNMENT SECURITIES

“For the purposes of these Rules, the terms used in them, in singular or plural, shall have the meanings indicated below:
…
BONDES: to the Development Bonds issued by the Federal Government of the United Mexican States in the national market, denominated in national currency, both at fixed interest rate, also known as “BONOS M”, and at variable interest rate, also known as “BONDES D” or “BONDES F”, denominated in UDIS at fixed interest rate, also known as “UDIBONOS”, as well as those aligned with environmental, social, and corporate governance criteria and denominated in national currency, both at fixed interest rate, also known as “BONOS MS”, and at variable interest rate, also known as “BONDES G”;

BONDES G: to the Development Bonds issued by the Federal Government of the United Mexican States in the national market, which have been certified by a securities rating agency and an ESG 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 Holding 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 Gazette of the Federation on April 12, 2022, as they may be modified by subsequent resolutions, and which, in turn, comply with the Green Bond Principles, the Social Bond Principles, and the Sustainability Bond Guidelines, in adherence to the Guide for External Reviews of Green, Social, and Sustainability Bonds, published by the Swiss Confederation association known as “International Capital Market Association” (ICMA) or, in their case, the instruments that replace them, denominated in national currency, at variable interest rate corresponding to the TIIE de Fondeo;

BONOS MS: to the Development Bonds issued by the Federal Government of the United Mexican States in the national market, which have been certified by a securities rating agency and an ESG 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 Holding 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 Gazette of the Federation on April 12, 2022, as they may be modified by subsequent resolutions, and which, in turn, comply with the Green Bond Principles, the Social Bond Principles, and the Sustainability Bond Guidelines, in adherence to the Guide for External Reviews of Green, Social, and Sustainability Bonds, published by the Swiss Confederation association known as “International Capital Market Association” (ICMA) or, in their case, the instruments that replace them, denominated in national currency, at fixed interest rate; … DALI: the payment system known as “Securities Deposit, Administration and Settlement System”, administered by INDEVAL; … Advanced Electronic Signature:
to that signature that meets the requirements of Advanced Electronic Signature or Reliable Signature referred to in articles 89 and 97 of the Commercial Code, as modified or replaced subsequently; … System: the Bank of Mexico system that allows the persons determined in these Rules to submit bids through SIAC-BANXICO, in accordance with the contract entered into with the Bank of Mexico; SIAC-BANXICO: the Bank of Mexico Customer Attention System; … TIIE de Fondeo: the Interbank Equilibrium Interest Rate in national currency, for a term of one Banking Business Day, which the Bank of Mexico publishes in accordance with what is provided in Section IV of Chapter IV of Title Third of the “Provisions Applicable to the Operations of Credit Institutions, Regulated Multiple-Object Financial Societies that Maintain Patrimonial Links with Credit Institutions and the National Agricultural, Rural, Forestal and Fisheries Development Financial Institution”, issued by the Bank of Mexico through Circular 3/2012, including its modifications through subsequent resolutions or, in their case, the instrument that replaces it; …”

“2. CALL FOR AUCTIONS
The Bank will make available to the entities referred to in the previous section 1, the calls for the 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 System, or through any other electronic, computing, or telecommunications medium authorized for this purpose by the Bank, unless the Bank announces another date or time for a particular call. …”

“4. PRICES AND RATES
The Bank will inform bidders of the rates for CETES or the prices for BONDES that the Federal Government offers for their swap, through the 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 purpose by the Bank. …”

“5.31 Bidders must submit their bids through the System on the date and within the period indicated for this purpose in the corresponding calls.
…
In the event that bids cannot be submitted through the System, or when the Bank so determines, bidders may submit them, exceptionally, through any other electronic, computing, or telecommunications medium authorized for this purpose by the Bank of Mexico, during the hours determined in the respective call, in which case they must confirm them by email sent to mercadodedinero@banxico.org.mx or by written document sent to the National Operations Management of the Bank of Mexico presented in a closed envelope, no later than 17:00:00 hours on the same Banking Business Day of the Auction, using the corresponding model contained in Appendices 1 to 3 and accompanying it with a cover letter, as appropriate, for each of the Government Securities involved. The documents mentioned in the previous paragraph must be signed with a 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 of Mexico, in the case of handwritten signatures, so that said signatures must be registered in the Bank of Mexico itself. 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.”

“5.41 …
The access, identification, and, in their case, operation keys established for the use of the System or any other electronic, computing, or telecommunications medium used for the purposes of these Rules, will replace the handwritten signature with an electronic one, so that the documentary or technical records where they appear will have full legal validity and produce the same effects that the laws grant to documents signed by the parties and, consequently, will have equal probative value.”

“6. ALLOCATION
…
In Auctions at a single rate or price, the rate or price at which the Government Securities involved will be allocated will be that corresponding to the last bid that receives allocation even if it is partially satisfied in amount.
…”

“7. RESULTS
The Bank will make available to bidders, through the aforementioned Internet electronic page of the Bank of Mexico or through any other electronic, computing, or telecommunications medium authorized for this purpose by the Bank of Mexico, the general results of the Auctions starting from sixty minutes after the deadline applicable for the submission of bids. The information corresponding to the general results of an Auction will remain available to bidders through the mentioned medium, until the results of a new Auction are incorporated in the terms indicated above. The Bank will inform each bidder individually, through the System or through any other electronic, computing, or telecommunications medium authorized for this purpose by the Bank of Mexico, starting from sixty minutes after the deadline applicable for the submission of bids of the Auction in question, the quantity of Government Securities that, in their case, have been allocated to them and the quantity of Government Securities that, in their case, they will deliver.”

“8.2 The settlement of the 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 settlement day, the Bank will instruct INDEVAL to: a) make the corresponding charge in the securities account of the credit institution or brokerage house involved, for the total of Government Securities that must be delivered to the Federal Government, in terms of what is provided in the following paragraph, and b) credit the cited account with the total of Government Securities that must be received. …”

“8.3 …
For the purposes of the above, all Government Securities that bidders who have received allocation are obligated to deliver must be deposited in the corresponding securities accounts, before the closing of operations of DALI on the settlement day corresponding.
…”

“8.4 In the event that a bidder does not have the total amount of Government Securities that must be delivered in the designated account as indicated in the previous section, the Bank may, without the need for a judicial declaration, rescind the swap for the missing amount, so that the corresponding credits and charges will not be made in the securities accounts in DALI. …”

“8.5 In the case of BONDES with fixed interest rate issued prior to the placement date, the settlement must be carried out by adding to the unit price, the accrued unpaid interest, from the date of their issuance or from the last interest payment, as appropriate, up to the settlement date, according to the following formula:
(1)
Where:
Accrued interest in national currency or in UDIS, as appropriate.
Nominal value of the title in national currency or in UDIS, as appropriate.
Natural days elapsed between the date of issuance or last interest payment, as appropriate, and the settlement date.
Annual interest rate of the BONDE expressed in annual percentage terms and rounded to two decimals.
In the case of BONDES with variable interest rate, the settlement must be carried out by adding to the unit price, the accrued unpaid interest, from the date of their issuance or from the last interest payment, as appropriate, up to the settlement date, according to the following formula:
(2)
Where:
Accrued interest in national currency.
Nominal value of the title in national currency.

132 OFFICIAL GAZETTE Thursday, February 15, 2024 N = Natural days elapsed between the date of issuance or last interest payment, as appropriate, and the settlement date.
R = Annual accrued interest rate of the title, expressed in annual percentage terms and rounded to two decimals calculated according to the following formula:
(3)
Where:
For each of the natural days between the date of issuance of the BONDE or the last interest payment, and the settlement date, will take values from 1 to N.
Operator meaning to perform the multiplication of the factors in parentheses.
For “BONDES D”:
ri = the annual interest rate, expressed in percentage terms with rounding to two decimals at which credit institutions and brokerage houses carry out operations of purchase and sale and repurchase for a term of one Banking Business Day with bank titles, known in the market as “Weighted Bank Funding Rate”, calculated and announced by the Bank on the day, in terms of the publication in the Official Gazette of the Federation of July 31, 2000, through its Internet electronic page www.banxico.org.mx or through any other electronic, computing, or telecommunications medium authorized for this purpose by the Bank itself. In this latter case, the Bank will timely inform the medium through which said rate will be disseminated. In the case of days that are not Banking Business Days, for the calculation of the referred interest rate, the rate announced on the immediately preceding Banking Business Day that corresponds will be used. In the event that it cannot be determined or that the rate referred to in element ri ceases to be announced, 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 operations for a term of one Banking Business Day with bank titles. The Bank will calculate the average of the two interest rates thus obtained for its determination and will announce the result in the form and means mentioned, as an interest rate substitute for the one referred to in the definition of the previous element ri. For “BONDES F” and “BONDES G”:
ri = The annual interest rate, expressed in percentage terms with rounding to two decimals, based on wholesale peso funding operations carried out by banks and brokerage houses through repurchase operations for a term of one Banking Business Day with titles issued by the Federal Government, the Bank Protection Institute (IPAB), and the Bank of Mexico known in the market as TIIE de Fondeo, calculated and announced by the Bank of Mexico on the day through its electronic page www.banxico.org.mx, in terms of what is provided in the Applicable Provisions to the Operations of Credit Institutions, Regulated Multiple-Object Financial Societies that Maintain Patrimonial Links with Credit Institutions and the National Agricultural, Rural, Forestal and Fisheries Development Financial Institution, issued by the Bank of Mexico through Circular 3/2012, published in the Official Gazette of the Federation of March 2, 2012, as they have been modified by subsequent resolutions, or through any other electronic computing or telecommunications medium authorized for this purpose by the Bank of Mexico itself. In this latter case, the medium through which said rate will be disseminated will be timely informed. In the case of days that are not Banking Business Days, for the calculation of the referred interest rate, the rate announced on the immediately preceding Banking Business Day that corresponds will be used. For each bid allocated within the call, bidders will deliver or receive the quantity of Government Securities allocated in the swap Ni and will deliver to the Bank or receive from it the quantity Ni,j of Government Securities in swap of the requested series. For the purposes of what is stated in this paragraph, Ni,j will correspond to the result of applying the following formula:

Jueves 15 de febrero de 2024 DIARIO OFICIAL 133 (4) Where:
Price allocated for the BONDE or CETE that bidders offer or request in the call (the price of CETES must be rounded to seven decimals and that of BONDES to hundred-thousandths).
Quantity of accrued unpaid interest of the BONDES offered in swap by bidders in the call and calculated according to the formula that results applicable among those indicated in this section 8.5 (the accrued interest of BONDES must be rounded to twelve decimals).
Price for the BONDE or CETE of the series that the Federal Government offers or receives in the call.
Quantity of accrued unpaid interest of the BONDE of the series offered in swap by the Federal Government and calculated according to formula (1).
Quantity of BONDES or CETES to be delivered or received by bidders, as appropriate, for each bid allocated in the call.
Quantity of BONDES or CETES of the series to be received or delivered by bidders for each bid allocated in the call. It will be truncated to the nearest lower integer.”

“9.3 In the event that, due to force majeure or unforeseeable circumstances, the Bank’s Internet electronic page or the System cannot be used to announce the calls, hold the Auctions, or inform the results thereof, the Bank will timely communicate the applicable procedure to announce such calls or the results of the corresponding Auctions.”

“9.4 …
For this effect, credit institutions and brokerage houses must grant an authorization in favor of the Bank, prepared in terms of the format included in Appendix 4, a copy of which must be delivered to INDEVAL.
The persons referred to in letters b), c), and d) of the first paragraph of section 1 of these Rules must deliver and receive the corresponding Government Securities through a credit institution or brokerage house, who must grant an authorization to the Bank, prepared in terms of the model contained in Appendix 5, for the same effects indicated in the first paragraph of this section. The authorizations that credit institutions or brokerage houses deliver to the Bank for the effects indicated in this rule must be signed by whoever has the authority to perform acts of dominion in the name and representation of the credit institution or brokerage house involved. To accredit the referred authority, the credit institution or brokerage house involved must accompany a certified and simple copy 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-in-fact or attorneys-in-fact. The documentation that must be sent to the Bank in accordance with what is provided in this article must be delivered to the Operations Management Management of the Bank of Mexico with an advance of at least five Banking Business Days to the date on which it intends to participate in the Auctions.”

“9.7 To participate in the operations referred to in these Rules, bidders must enter into the respective contract with the Bank, for which they must provide it, through the Management of…”

134 DIARIO OFICIAL Thursday, February 15, 2024 Operation Instrumentation, the name of the person(s) intending to sign it, attaching a simple copy of their official identification(s) and a certified simple copy of the public deed in which the granting of powers to exercise acts of domain is recorded. The aforementioned documentation must be delivered with, at least, five Banking Business Days in advance of the date on which it is intended to participate in the Auctions for the first time.”

“APPENDIX 1
MODEL OF APPLICATION TO PARTICIPATE IN THE AUCTION FOR THE SWAP OF FEDERAL GOVERNMENT DEVELOPMENT BONDS WITH FIXED INTEREST RATE (BONOS M AND BONOS MS)

BANK OF MEXICO
NATIONAL OPERATIONS MANAGEMENT
5 de Mayo Avenue, No. 6
Col. Centro, C.P. 06000, Mexico City

Present.

APPLICATION 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 accordance and for the purposes of the “Rules for the swap of government securities”, issued by the Bank of Mexico through Circular 2/2011, as modified by subsequent resolutions.

Bidder Name: _____________________________
Bidder Key at the Bank of Mexico: _____________________________ Key of the Bond issuance for which bids are presented: ___________________________ (MMDDYYYY)/(MSMMDDYYYY)

BIDS:
Price: Total Amount: Issuance to receive or deliver in the swap:
______. ______ _____ thousand pesos __________________ ______. ______ _____ thousand pesos __________________ ______. ______ _____ thousand pesos __________________

The PRICES must be expressed up to FIVE decimal places.
The PRICES are without 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 current “Rules for the swap of government securities”, as well as to the terms and conditions of the call for bids dated ____ of ____________ of __.

Sincerely,
1
(Bidder Name)

Thursday, February 15, 2024 DIARIO OFICIAL 135 (Name, position and signature of authorized officials) NOTE: Unused spaces must be cancelled.
1This document must show the signature knowledge granted by the Bank of Mexico, therefore said signatures must be registered at the Bank of Mexico itself.”

“APPENDIX 1 BIS
MODEL OF APPLICATION TO PARTICIPATE IN THE AUCTION FOR THE SWAP OF FEDERAL GOVERNMENT DEVELOPMENT BONDS WITH ADJUSTABLE INTEREST RATE (BONDES D, BONDES F AND BONDES G)

BANK OF MEXICO
NATIONAL OPERATIONS MANAGEMENT
5 de Mayo Avenue, No. 6
Col. Centro, C.P. 06000, Mexico City

Present.

APPLICATION 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 accordance and for the purposes of the “Rules for the swap of government securities”, issued by the Bank of Mexico through Circular 2/2011, as modified by subsequent resolutions.

Bidder Name: _____________________________
Bidder Key at the Bank of Mexico: _____________________________ Key of the BONDE issuance for which bids are presented: ______________________ (LDMMDDYYYY) / (LFMMDDYYYY) / (LGMMDDYYYY)

BIDS:
Price: Total Amount: Issuance to receive or deliver in the swap:
______. ______ _____ thousand pesos __________________ ______. ______ _____ thousand pesos __________________ ______. ______ _____ thousand pesos __________________

The PRICES must be expressed up to FIVE decimal places.
The PRICES are without 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 current “Rules for the swap of government securities”, as well as to the terms and conditions of the call for bids dated ____ of ____________ of __.

Sincerely,
1

136 DIARIO OFICIAL Thursday, February 15, 2024 (Name, position and signature of authorized officials) NOTE: Unused spaces must be cancelled.
1This document must show the signature knowledge granted by the Bank of Mexico, therefore said signatures must be registered at the Bank of Mexico itself.”

“APPENDIX 2
MODEL OF APPLICATION TO PARTICIPATE IN THE AUCTION FOR THE SWAP OF FEDERAL GOVERNMENT DEVELOPMENT BONDS DENOMINATED IN INVESTMENT UNITS (UDIBONOS)

BANK OF MEXICO
NATIONAL OPERATIONS MANAGEMENT
5 de Mayo Avenue, No. 6
Col. Centro, C.P. 06000, Mexico City

Present.

APPLICATION 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 accordance and for the purposes of the “Rules for the swap of government securities”, issued by the Bank of Mexico through Circular 2/2011, as modified by subsequent resolutions.

Bidder Name: __________________________________ Bidder Key at the Bank of Mexico: _____________________________ Key of the Udibono issuance for which bids are presented: __________________________ (S MMDDYYYY)

BIDS:
Price: Total Amount: Issuance to receive or deliver in the swap:
______. ______ _____ thousand UDIS __________________ ______. ______ _____ thousand UDIS __________________ ______. ______ _____ thousand UDIS __________________

The PRICES must be expressed up to FIVE decimal places.
The PRICES are without 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 current “Rules for the swap of government securities”, as well as to the terms and conditions of the call for bids dated __ of ____________ of __.

Sincerely,
1
(Bidder Name)

Thursday, February 15, 2024 DIARIO OFICIAL 137 (Name, position and signature of authorized officials) NOTE: Unused spaces must be cancelled.
1This document must show the signature knowledge granted by the Bank of Mexico, therefore said signatures must be registered at the Bank of Mexico itself.”

“APPENDIX 3
MODEL OF APPLICATION TO PARTICIPATE IN THE AUCTION FOR THE SWAP OF CERTIFICATES OF THE FEDERAL TREASURY (CETES)

BANK OF MEXICO
NATIONAL OPERATIONS MANAGEMENT
5 de Mayo Avenue, No. 6
Col. Centro, C.P. 06000, Mexico City

Present.

APPLICATION 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 accordance and for the purposes of the “Rules for the swap of government securities”, issued by the Bank of Mexico through Circular 2/2011, as modified by subsequent resolutions.

Bidder Name: __________________________________ Bidder Key at the Bank of Mexico: _____________________________ Key of the CETE issuance for which bids are presented: ______________________ (BIMMDDYYYY) Term in days of the CETE issuance for which bids are presented: __________ days.

BIDS:
Price: Total Amount: Issuance to receive or deliver in the swap:
______. ______ _____ thousand pesos __________________ ______. ______ _____ thousand pesos __________________ ______. ______ _____ thousand 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 current “Rules for the swap of government securities”, as well as to the terms and conditions of the call for bids dated __ of ____________ of __.

Sincerely,
1
(Bidder Name)

138 DIARIO OFICIAL Thursday, February 15, 2024 (Name, position and signature of authorized officials) NOTE: Unused spaces must be cancelled.
1This document must show the signature knowledge granted by the Bank of Mexico, therefore said signatures must be registered at the Bank of Mexico itself.”

“APPENDIX 4
MODEL OF AUTHORIZATION IN FAVOR OF THE BANK OF MEXICO TO EFFECT CHARGES AND CREDITS IN THE ACCOUNTS OF CREDIT INSTITUTIONS OR BROKERAGE FIRMS THAT PRESENT BIDS

(LETTERHEAD OF THE CREDIT INSTITUTION OR BROKERAGE FIRM)

Mexico City, on ____ of ____________ of __.

BANK OF MEXICO
OPERATIONS MANAGEMENT DEPARTMENT
5 de Mayo Avenue, No. 6
Col. Centro, C.P. 06000, Mexico City

Present.

The entity named (NAME OF THE CREDIT INSTITUTION OR BROKERAGE FIRM) hereby authorizes and instructs irrevocably the Bank of Mexico to effect the necessary charges 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 swap operations of BONDES or CETES carried out under the “Rules for the swap of government securities”, issued by the Bank itself through Circular 2/2011, as modified. For such purposes, this entity gives its consent for the Central Bank 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, in its capacity as financial agent of the Federal Government, effect charges and credits in the national currency account that the Bank itself maintains for it, up to the amounts of 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 company must cover by virtue of any non-compliance with the provisions of the aforementioned Rules.

Finally, we make known to you that the authorizations and instructions referred to in this document may only be modified or revoked through written communication addressed to that Central Bank presented with, at least, one banking business 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 be applicable with respect to charges and credits resulting from bids presented by this company prior to such communication taking effect.

Sincerely,

Thursday, February 15, 2024 DIARIO OFICIAL 139 (NAME OF THE CREDIT INSTITUTION OR BROKERAGE FIRM) (Name, position and signature of person(s) with powers to exercise acts of domain) Cc: S.D. INDEVAL Securities Depository Institution, S.A. de C.V.
For your information.”

“APPENDIX 5
MODEL OF AUTHORIZATION IN FAVOR OF THE BANK OF MEXICO TO EFFECT CHARGES AND CREDITS IN THE ACCOUNTS OF A CREDIT INSTITUTION OR BROKERAGE FIRM ON BEHALF OF ANOTHER BIDDER

(LETTERHEAD OF THE CREDIT INSTITUTION OR BROKERAGE FIRM)

Mexico City, on ____ of ____________ of __.

BANK OF MEXICO
OPERATIONS MANAGEMENT DEPARTMENT
5 de Mayo Avenue, No. 6
Col. Centro, C.P. 06000, Mexico City

Present.

The entity named (NAME OF THE CREDIT INSTITUTION OR BROKERAGE FIRM) hereby authorizes and instructs irrevocably the Bank of Mexico to effect the necessary charges 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 swap operations of BONDES or CETES under the “Rules for the swap of government securities”, issued by the Bank itself through Circular 2/2011, as modified, and which must be delivered and received by (NAME OF THE BIDDER). For such purposes, this entity gives its consent for the Central Bank to send to said securities depository institution the corresponding instructions so that the respective records are made.

Additionally, it is authorized and instructed irrevocably the Bank of Mexico to, in its capacity as financial agent of the Federal Government, effect charges and credits in the national currency account that the Bank itself maintains for it, up to the amounts of cash differences resulting in favor 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 make known to you that the authorizations and instructions referred to in this document may only be modified or revoked through written communication addressed to that Central Bank presented with, at least, one banking business 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 be applicable with respect to charges and credits resulting from bids presented by (NAME OF THE BIDDER) prior to such communication taking effect.

Sincerely,
(NAME OF THE CREDIT INSTITUTION OR BROKERAGE FIRM) (Name, position and signature of person(s) with powers to exercise acts of domain) Cc: S.D. INDEVAL Securities Depository Institution, S.A. de C.V. For your information.
Cc: (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.

SECOND.- The modifications to section 9.4 and the addition of section 9.7 of the Rules for the swap of government securities shall enter into force on February 28, 2024. In order to carry out the formalization of the contract referred to in the aforementioned section 9.7 before the date indicated in this transitory rule, the persons referred to in section 1 of the aforementioned Rules interested in participating in the auctions must send the documentation mentioned in the aforementioned section 9.7, no later than February 20, 2024, to the Operations Instrumentation Management of the Bank of Mexico, located at 5 de Mayo Avenue number 18, Centro neighborhood, Cuauhtémoc Territorial Demarcation, postal code 06000, Mexico City.

Mexico City, on February 8, 2024.- BANK OF MEXICO: General Director of Central Banking Operations, Gerardo Israel García López.- Initials.- Director of Central Banking Regulations, María Teresa Muñoz Arámburu.- Initials.

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