There is no longer any question that Mexico is in a different league from the rest of Latin America. How else to explain the sovereign's raising $1.5 billion with a 30-year global bond issue placed in a matter of hours by joint leads Goldman Sachs and Salomon Smith Barney in early August?
Six hours, $1.5 Billion
Sep 1, 2001
With its lightning-fast bond issue in early August, Mexico seized on a hot investment grade bond market and succesfully tapped into taht strong demand.
As Latin issuers continue to take the heat from Argentina's slow-burning crisis of confidence, Mexico was able to attract $3 billion in orders from more than 150 US high-grade investors, locking in pricing of only 335 basis points over comparable US Treasurys. "The very strong performance [the bond] has demonstrated since pricing is the clearest evidence to date that Mexico has decoupled further from Latin America and particularly from any investor concerns related to Argentina," says John Hartzell, co-head of Latin American capital markets at Salomon.
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