With this, Mexico joined a group of Latin American governments seeking to lengthen their debt profiles when borrowing costs are falling.
MEXICO CITY (Reuters) – The Mexican government launched a global offer of 50-year bonds denominated in dollars that would be issued this month and would expire in April 2071, according to documents revealed on Monday by the U.S. financial markets regulator.
The amount of the offer was not disclosed in the prospectus published by the U.S. Securities and Exchange Commission (SEC). However, Mexico will pay coupons in April and October of each year, starting in 2021.
According to information from the IFR service, the Mexican government bonds would be listed in Luxembourg and Taipei, with a rate of around 4.15%. However, prices are expected to be disclosed later on Monday.
In November, Mexico completed a debt refinancing operation worth some $6.6 billion in the international markets, including a bond offering that registered overdemand.
The operation, which had three components, included the issuance of two new notes: a 10-year note for US$1,825 million maturing in 2031 with a coupon of 2.659% and a 40-year note for US$1,800 million maturing in 2061 with a coupon of 3.771%.
Mexico will issue a 50-year benchmark bond for a total amount of $3 billion, covering 35 percent of the foreign currency requirements approved by Congress for 2021.
With this, Mexico joined a group of Latin American governments seeking to lengthen their debt profiles when borrowing costs are falling.
“This morning, we placed a $3 billion, 50-year bond in Taiwan’s Formosa market. This bond is one of the longest-term bonds that Mexico has ever placed, and it shows the confidence of the investing public in the country,” said the head of the Treasury Department, Arturo Herrera, through his Twitter account.
For the first time, Mexico accessed the Taiwanese Formosa market, where it placed a new 50-year benchmark bond for a total amount of $3 billion at a yield rate of 3.75 percent and a coupon rate of 3.75 percent.
