• DEAL: Mexico’s Finance Ministry announced it was able to raise USD 2.3 billion in a two-part global bond deal this week that reached a maximum demand of 6.4 times the amount placed and that improves the government’s debt structure going into 2020.
• BONDS: With Citi, Credit Suisse, BBVA and Goldman Sachs as bookrunners, the first part of the deal involved financing for USD 1.5 billion through the issuance of a new 2030 bond yielding 3.312%. The second part involved USD 800 million by reopening a previous 2050 bond yielding now 4.041%.
• TRUST: “The financial conditions reached in both transactions were favorable for Mexico. This, combined with the extensive participation of the investment public, shows strong confidence in both macroeconomic management and public finances in Mexico”, the Mexican Ministry of Finance said.
• BENEFITS: According to the government, this week’s two-part deal allows for the coverage of 100% of the government’s external market debt repayments scheduled for 2020 and 58% of the total external financing needs of the government scheduled for 2020.
