• RETURN: Mexico returned to the bond market Wednesday raising USD 6 billion, via a three-part bond to help the government face the coronavirus shock, according to the Mexican Finance Ministry. The government said the bond falls within Congress authorized debt limits.
• CORONAVIRUS: “This measure will help consolidate the Mexican government’s set of funding sources. As well as to guarantee the necessary resources to face the COVID-19 crisis, to operate programs and to deal with any future adversity”, said Mexican Finance Minister Arturo Herrera said on Twitter.
• PREMIUM: Despite the difficult conditions, Mexico was able to secure resources by paying higher premiums to what the government offered in a previous event in January. Today, the yields for the 5-year trench was 4.125%, for the 10-year trench was 5%, and for the 31-year trench was 5.5%.
• INTEREST: “There are still institutional investors who find it attractive to invest because of its investment-grade and the interest rate paid…is quite attractive”, said Juan Reich, director of economic analysis at BX+. This month, rating agencies S&P and Fitch downgraded Mexico’s sovereign.
