By Mariana Santibáñez
Local currency – Mexico: Closer to home
A growing number of Latin American borrowers are looking to Mexico’s debt markets – the most sophisticated in the region – to raise financing
In early March, Chile's Molymet issued in Mexico's domestic
debt capital market for the sixth time, selling a 10-year, 1
billion peso ($78 million) deal.
The processor of molybdenum and rhenium has become a regular
borrower in the Tequila market as it raises cash for its local
subsidiary. Issuing there also helps it diversify its investor
base in a currency that has a well-developed swap market, Jorge
Ramírez, the company's vice-president of finance,
When it debuted in the market in October 2009, Molymet was
just the second foreign corporate to do so. Spanish utility
Iberdrola was the first, with a 10-year, 1.5 billion peso bond
Since then, the market has taken off. Borrowers from Latin
America outside Mexico have around $1.8 billion worth of peso
debt outstanding, according to Dealogic. The deals are part of
a trend among Latin American...
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