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Finance Ministry Offers New Dollar Bond While Buying Back Old Notes

MEXICO
  • Mexico Offers New Dollar Bond While Buying Back Old Notes (BBG)
  • Mexico is tapping sustainable international debt markets to help finance a buyback of some outstanding government notes.
  • An initial price target (+265 Area) was set on Monday for new dollar-denominated bonds set to mature in 2033, which will be tied to the United Nations’ Sustainable Development Goals, according to a person familiar with the matter. The deal is expected to price today and details on the issue are here:
    • $Benchmark Sust. Fixed (May 19, 2033) IPT +265 Area
    • Exp. Ratings: Baa2/BBB
    • Format: SEC registered, senior unsecured, sustainability bond
    • 3-month par call, MWC
    • Settlement: Aug. 19, 2022 (T+9)
    • Denoms: 200k x 1k
    • Bookrunners: BBVA, GS, JPM, Natixis
  • Some proceeds of the sale will be used to help fund the redemption of all or part of its outstanding $1.7 billion in government notes due in 2025, the person said.
  • Mexico is also offering to buy back 12 series of bonds due between 2034 and 2061 for cash from current holders, according to a Monday statement.
  • Within the Bloomberg article, a BBVA strategist remarks that the Finance Ministry are taking advantage of being the first big issuer to come to market in what can typically be a month of thin liquidity. Additionally, BBVA note given the risk-on situation “they’re taking advantage of the spread compression”.
    • It may be a welcome sight for some investors, who have seen a steep drop in Latin American government bond issuance this year, compared to 2021.
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  • Mexico Offers New Dollar Bond While Buying Back Old Notes (BBG)
  • Mexico is tapping sustainable international debt markets to help finance a buyback of some outstanding government notes.
  • An initial price target (+265 Area) was set on Monday for new dollar-denominated bonds set to mature in 2033, which will be tied to the United Nations’ Sustainable Development Goals, according to a person familiar with the matter. The deal is expected to price today and details on the issue are here:
    • $Benchmark Sust. Fixed (May 19, 2033) IPT +265 Area
    • Exp. Ratings: Baa2/BBB
    • Format: SEC registered, senior unsecured, sustainability bond
    • 3-month par call, MWC
    • Settlement: Aug. 19, 2022 (T+9)
    • Denoms: 200k x 1k
    • Bookrunners: BBVA, GS, JPM, Natixis
  • Some proceeds of the sale will be used to help fund the redemption of all or part of its outstanding $1.7 billion in government notes due in 2025, the person said.
  • Mexico is also offering to buy back 12 series of bonds due between 2034 and 2061 for cash from current holders, according to a Monday statement.
  • Within the Bloomberg article, a BBVA strategist remarks that the Finance Ministry are taking advantage of being the first big issuer to come to market in what can typically be a month of thin liquidity. Additionally, BBVA note given the risk-on situation “they’re taking advantage of the spread compression”.
    • It may be a welcome sight for some investors, who have seen a steep drop in Latin American government bond issuance this year, compared to 2021.