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
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.
Investors have grown...
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