Mexico Sells $1.75 Billion Global Issue
Mexico issued a $1.75 billion, 20-year bond in September that
sold like hot cakes even as Brazil edged closer to default. The
bond was priced to yield 8.28% at 353 basis points over US
Treasurys and has an 8% interest rate. Proceeds from the bonds,
which were sold in a day, will be used to buy back $1.3
billion-worth of Brady bonds, issued as part of Mexico's 1990 debt
restructuring process. The Brady bonds represent 25% of Mexico's
outstanding US dollar par Brady bonds. The bond was originally
sized at $1.5 billion, but strong investor demand allowed
Credit Suisse First Boston and
JP Morgan Chase to increase the offering to
$1.75 billion. The government will use the $450 million balance to
repay debt maturing in 2003. Because the government opted to use
the proceeds for...
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