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 bookrunners 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
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.