Mexico plans to sell dollar bonds as soon as today in its first international offering since the country’s rating was lifted last month by Standard & Poor’s.
The country plans to offer 2021 securities to yield about 125 basis points, or 1.25 percentage points, above Treasuries, according to a person familiar with the transaction. Securities maturing in 2045 may be sold to yield 175 basis points higher, said the person, who asked not to be identified because terms aren’t set. Credit Suisse Group AG and HSBC Holdings Plc are arranging the offering.
S&P lifted Mexico’s rating on Dec. 19 by one level to BBB+, three steps above junk grade, on the prospect that overhauls proposed by President Enrique Pena Nieto will spur growth. Mexico’s economy will expand 3.47 percent this year, faster than the 2.89 percent increase projected for Latin America, according to the median forecasts of economists surveyed by Bloomberg.
“Mexico has become one of the more interesting countries in our market,” Joe Kogan, the head of emerging-market strategy at Bank of Nova Scotia, said in an e-mailed response to questions. There are “good prospects for Mexican financial assets for 2014.”
The extra yield investors demand to own Mexican bonds over Treasuries dropped one basis point, or 0.01 percentage point, to 186 basis points today. It reached a one-year high of 247 basis points on June 24.
Yields on Mexico’s $4.5 billion of bonds due in 2044 fell one basis point to 5.47 percent at 10:30 a.m. New York time after rising yesterday to a four-week high.
Mexico will use the proceeds from the offering to buy back global bonds maturing in 2026, 2031, 2033, 2034 and 2040, according to a press release distributed by PR Newswire.
The country plans to offer 2021 securities to yield about 125 basis points, or 1.25 percentage points, above Treasuries, according to a person familiar with the transaction. Securities maturing in 2045 may be sold to yield 175 basis points higher, said the person, who asked not to be identified because terms aren’t set. Credit Suisse Group AG and HSBC Holdings Plc are arranging the offering.
S&P lifted Mexico’s rating on Dec. 19 by one level to BBB+, three steps above junk grade, on the prospect that overhauls proposed by President Enrique Pena Nieto will spur growth. Mexico’s economy will expand 3.47 percent this year, faster than the 2.89 percent increase projected for Latin America, according to the median forecasts of economists surveyed by Bloomberg.
“Mexico has become one of the more interesting countries in our market,” Joe Kogan, the head of emerging-market strategy at Bank of Nova Scotia, said in an e-mailed response to questions. There are “good prospects for Mexican financial assets for 2014.”
The extra yield investors demand to own Mexican bonds over Treasuries dropped one basis point, or 0.01 percentage point, to 186 basis points today. It reached a one-year high of 247 basis points on June 24.
Yields on Mexico’s $4.5 billion of bonds due in 2044 fell one basis point to 5.47 percent at 10:30 a.m. New York time after rising yesterday to a four-week high.
Mexico will use the proceeds from the offering to buy back global bonds maturing in 2026, 2031, 2033, 2034 and 2040, according to a press release distributed by PR Newswire.
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