Sovereign Report

Sovereign Report

Mexico

Mexico Sells $1.75 Billion Global Issue Mexico issued a $1.75 billion, 20-year bond in September that sold like hot cakes even as Brazil edged closer to default. The bond was priced to yield 8.28% at 353 basis points over US Treasurys and has an 8% interest rate. Proceeds from the bonds, which were sold in a day, will be used to buy back $1.3 billion-worth of Brady bonds, issued as part of Mexico's 1990 debt restructuring process. The Brady bonds represent 25% of Mexico's outstanding US dollar par Brady bonds. The bond was originally sized at $1.5 billion, but strong investor demand allowed bookrunners Credit Suisse First Boston   and JP Morgan Chase t

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