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

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

Corporate & Sovereign Strategy

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

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