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)
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
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...
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.