Mexican Bradys, Endangered Species
Mexican Bradys are on their way out, after
the finance ministry decided to call $3.8 billion-worth of
outstanding dollar-denominated A and B series Brady bonds. Once
the transaction is completed, only $1.2 billion in Mexican
Brady bonds will remain in the market, or 3.6% of the amount
originally issued. The government issued a $1.5 billion,
five-and a-half year global bond and a $1 billion, 30-year
global bond, mainly to finance the operation. Both bonds
include collective action clauses, similar to the 12-year
global bond issued in February (see Done Deal).
Officials say pre-paying the Bradys will cut the government's
net external debt by $1.8 billion and release collateral worth
a further $1.9 billion. The government prepaid $500
million-worth of Brady bonds earlier this year.
In April, Uruguay asked bondholders to exchange up to $6.5
billion in outstanding...
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