Creating and distributing additional copies is prohibited without the permission of the publisher. Contact subscriptions@latinfinance.com.

SOVEREIGN ISSUER/LIABILITY MANAGEMENT: United Mexican States / Mexico €1.6bn new issue and tender

Jan 17, 2014

Mexico’s foresight, nimbleness and use of innovative structures marks it out as Latin America’s most sophisticated sovereign borrower

Mexico may have developed some predictable patterns in the bond market since 2009 - typically issuing in dollars at the start of the year with a five or 10-year maturity. But last year, it changed course.

The US's worrisome fiscal situation - highly-charged political discussions over the country's debt ceiling and planned budget tightening - sparked market volatility at the end of 2012, and forced the sovereign to reconsider its plans.

Instead of borrowing medium-term debt, Mexico looked long.

It reopened its 2044 bond in early January, adding $1.5 billion after drawing $3 billion in demand. The sovereign was applauded for anticipating potential US Treasury moves and heavy bond market supply.

"It was a more difficult tenor to issue at the beginning of the...

To continue reading please take a free trial, subscribe or login below.


Already have an account?

Subscribe

Subscribe now for unlimited access to all current and archive news, data and market analysis. 

Subscribe

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial



LatinFinance Events

Poll

Will Argentina reach a deal with holdouts?

Vote