Sovereign Report

Mar 1, 2003

Mexico Issues Bond With Action Clauses

In a landmark deal in February, Mexico became the first sovereign to issue a global bond incorporating innovative collective action clauses. These legal agreements spell out the specific obligations of bond issuers and how investors' interests would be represented in the event of a debt restructuring process. The agreements have been the subject of intense debate in the capital markets after Argentina defaulted on its debt in December 2001. Mexico issued the $1 billion, 12-year bond on February 26, in a transaction led by Goldman Sachs and JP Morgan. The bond, which has an annual interest rate of 6.625% and a yield-to-maturity of 6.918%. It was priced at 312 basis points over 10-year US Treasuries. The bond attracted $1.7 billion in book orders from more than 120 institutional investors mostly based in the US and Europe.


Peru Sells Bonds


To continue reading please take a free trial, subscribe or login below.

Already have an account?


Subscribe now for unlimited access to all current and archive news, data and market analysis. 


Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial

LatinFinance Events


Which area will be most profitable for investment banks in LatAm in 2016?