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Launch of $4 Billion Two-Part Debt Offering

MEXICO
  • Mexico has kicked off 2023 with an offering of dollar bonds, a move that would make it the first emerging-market government to tap international debt markets this year. (Bloomberg)
  • The country launched a $1.25 billion five-year note that may yield 150 basis points and $2.75 billion of 12-year bonds at 260 basis points above Treasuries, according people familiar with the matter. Demand for the notes reached more than $16 billion at one point, said the people, who asked not to be identified because they’re not authorized to speak about it.
  • Details of the deal via Bloomberg:
    • $1.25b 5Y Fixed (Feb. 9, 2028) at +150
      • Guidance +150#, IPT +195 area
      • 1-month par call, MWC
    • $2.75b 12Y Fixed (Feb. 9, 2035) at +260
      • Guidance +265a (+/-5), IPT +295 area
      • 3-month par call, MWC
    • Settlement: Jan. 9, 2023 (T+4)
    • Denoms: 200k x 1k
    • Bookrunners: BBVA, BNPP, BofA, JPM
    • UOP: For general funding purposes of the Government of Mexico

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