Mexico lists debt bonds worth $7,500 million on global exchanges
A total of 7.5 billion dollars worth of new benchmark bonds were placed on international financial markets, according to the Ministry of Finance and Public Credit (SHCP).
«With this operation, Mexico has achieved the largest placement in its recent history, reaching a total of 7.5 billion dollars,» it said in a news release.
For the ninth year in a row, it said that this was the first debt placement of the year in the global financial markets in January, establishing Mexico as the biggest sovereign issuer with a BBB rating worldwide.
The agency headed by Rogelio Ramírez de la O added that favorable financial conditions were obtained, resulting in a lower financial cost for the country compared to other months.
The participation of new global investors in different regions is a result of the efforts made by the Ministry of Finance to broaden the investor base, which reflects the confidence in Mexico’s public finances and economic stability, he said.
The debt bonds placed reached a maximum demand of 21.3 billion dollars and the placement was as follows:
- A 5-year bond that will pay a yield rate of 5.07% and coupon of 5%, 37 basis points cheaper than in January 2023, for an amount of 1 billion dollars.
- A 12-year bond that will pay a yield rate of 6.09% and coupon of 6%, 30 basis points lower than in January 2023, for an amount of US$4 billion.
- A 30-year bond that will pay a yield rate of 6.45% and coupon of 6.40%, only 11 basis points above April 2023, for an amount of US$2.5 billion.
He highlighted that these operations not only improve the liquidity and efficiency of the dollar bond yield curve, but also set a positive precedent for future Mexican public and private sector issuers throughout the year.
