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Sovereign Report

Jun 1, 2003

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.


Uruguay Restructures

In April, Uruguay asked bondholders to exchange up to $6.5 billion in outstanding...

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