May 26, 2004
What did the exchange consist of?
We swapped $2.3 billion of existing global bonds that mature in 2019, 2022 and 2026 and had higher coupons, dollar prices and traded wide to our curve, for $2.87 billion in new bonds. We reopened our 2014 bond, selling $793million in 10-year bonds and also the 2033, where we sold $2.06 billion of 30-year bonds. We made net present value (NPV) savings of $50 million in interest with lower coupons and dollar prices, and extended the average life of these bonds by four years. Eliminating the higher-priced bonds means the pricing of future placements will
Mexico carried out a landmark global-for-global bond exchange in April. Andrés Conesa, head of public credit, says the deal saved money, improved investor relations and will help the sovereign price future bond issues more efficiently.