Mexico's Ministry of Finance and Public Credit (SHCP) announced on Tuesday evening that it had carried out its “largest debt placement in recent history” in international markets. The country placed $7.5 billion in government bonds as part of President Andrés Manuel López Obrador's plan to increase debt and finance more spending this election year. This will make the country “the largest sovereign issuer with a BBB rating in the world,” according to the agency.
“Favorable financing conditions have been achieved, resulting in lower financial costs for the country compared to previous months,” the Finance Ministry said in a brief statement. “The transaction not only improves the liquidity and efficiency of the dollar bond yield curve, but also sets a positive precedent for future Mexican public and private sector issuers later this year,” he added.
The bonds were placed in three tranches: one for five years with an interest rate of 5.07%, 37 basis points cheaper than in January 2023, according to the ministry, with a coupon of 5% for an amount of 1,000 million dollars; a 12-year bond with a rate of 6.09%, 30 basis points cheaper than a year ago, with a coupon of 6% for an amount of $4,000 million; and a 30-year bond with a yield of 6.45%, 11 basis points more expensive than the bonds issued in April last year, coupon of 6.4% for an amount of $2.5 billion.
Subscribe here Subscribe to the EL PAÍS México newsletter and receive all the important information on current events in this country