Mexico's Government Raises $4 Billion Dollars

The Mexican government raised $4 billion through the issuance of bonds in international markets, with maturities of five and 12 years.
The demand significantly exceeded the placed amount, reflecting the investors' confidence in Mexican government debt.

Mexico raises $4 billion through international bond issuance, reflecting strong investor confidence. Photo: diegograndi.

By: SiiLA News

01/05/2023

The Mexican government raised $4 billion through the issuance of bonds in international markets with maturities of five and 12 years, according to the Secretariat of Finance. In a statement, it specified that $1.25 billion corresponds to the five-year bond, which will pay an interest rate of 5.4%, while the remaining $2.75 billion corresponds to the 12-year bond with a coupon of 6.35%.

"The high demand for this operation reaffirms the confidence of international investors in acquiring Mexican government debt," stated the Secretariat of Finance.

The announcement further mentioned that the bonds were acquired by 383 institutional investors from the Americas, Asia, Europe, and Oceania. The Mexican government bonds had a demand of up to $18.4 billion, which is 4.6 times the total amount placed, making it the highest demand for Mexican external debt issuance since April 2020.

It is worth noting that this debt issuance represents 72.7% of the $5.5 billion limit for new foreign currency debt issuances approved by the Mexican Congress for 2023.

Read the full article (in Spanish).

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