Mexico to Swap Bonds Today to Lower Foreign Debt
Mexico will swap foreign-currency bonds for domestic securities today, the first part of a planned $3.3 billion exchange aimed at making the countrys finances less vulnerable to declines in the peso.
In todays transaction, investors can turn in as much as $500 million of dollar bonds in exchange for peso debt. Investors in November bought warrants from the government that gave them the option to turn in their dollar bonds for peso bonds. In March, the government sold similar warrants to holders of some bonds denominated in European currencies.
The swaps are part of President Vicente Foxs plan to reduce Mexicos foreign debt to the equivalent of 6 percent of gross domestic product, the lowest since 1960, by the time he hands over power on Dec. 1. Mexicos foreign debt equaled 12 percent of GDP when he took office in 2000.
More : bloomberg.com
Mexico Sells Warrants to Swap $2.5 Billion of Bonds
Mexico sold securities that allow investors to swap about $2.5 billion of the nation's dollar- denominated bonds for peso debt next year, a person familiar with the offering said.
Investors paid $65 million for warrants that can be turned in along with Mexican dollar bonds that mature between 2007 and 2033 in exchange for peso securities due in 2011, 2014 and 2024, the person said.
The sale is part of a government effort to shift more of its financing to the domestic market, helping reduce its vulnerability to declines in the
Mexico's Televisa replaces $600 mln in debt
Mexico's No. 1 broadcaster Televisa said on Wednesday it had successfully replaced $600 million in existing debt with identical new paper in a technical operation to comply with U.S. market regulations.
Televisa (TLVSCPO.MX: Quote, Profile, Research) (TV.N: Quote, Profile, Research) said its month-long offer to exchange debt with a coupon of 6.625 percent and maturing in 2025 for identical new paper closed on Tuesday.
"The total amount of old debt was exchanged for new bonds, corresponding to $600 million in new bonds issued today, September 7, 2005," Televisa said.
The operation was a purely technical one
Emerging debt-Prices rally on Treasuries; Mexico leads
Emerging market debt prices rallied on Friday, boosted by U.S. Treasuries and led by Mexico, where the government announced its second step this week to reduce its outstanding foreign debt.
Mexican external bonds, which usually move in relatively narrow ranges compared with other major EM credits, roared higher. The benchmark global bond due in 203, jumped 2.500 points to bid 124.50 and the global 2019 rose 4.250 to bid 123.750.
Analysts said the surge was driven by the view that debt will become more valuable as it dwindles in supply.
"It was a Mexico colored day," said
Mexico to Save $350 Million After Prepaying Debt, Garcia Says
Mexico will save as much as $350 million after borrowing in domestic markets to pay $12.4 billion of foreign debt ahead of schedule, Deputy Finance Minister Alonso Garcia Tames said.
The government yesterday sold local bonds to pay $9 billion of debt owed to the World Bank and Inter-American Development Bank and to buy back $3.4 billion of dollar-denominated bonds. Mexico raised more money from the sale than the $7 billion it originally sought.
This transaction has contributed to the perception that the outlook for Mexican debt is positive, Garcia
Mexicos Urbi sells $150 mln in 10-yr bonds
Mexican homebuilder Urbi (URBI.MX: Quote, Profile, Research) on Monday said it has placed $150 million in 10-year senior bonds in the U.S. market.
Urbi, one of Mexicos largest house construction firms, said it planned to use proceeds from the 8.5 percent, 2016 maturing bond to refinance debt and fund other corporate activities.
The bonds, offered to institutional investors in the United States and other countries, have been rated BB by Standard and Poors and Fitch ratings and BA3 by Moodys.
More: today.reuters.com
Peru Bonds Outperform Mexico's Debt on Growth, Slower Inflation
Peru's dollar-denominated bonds are outperforming emerging market debt sold by countries including Mexico as four years of economic growth and record low inflation lure investors.
Putman Investments and Standish Mellon Asset Management Co. are among investors buying Peru's bonds, betting the nation's credit ratings will rise. President Alejandro Toledo has helped spur 48 straight months of economic expansion, the second-best performance in Latin America, and cut the inflation rate to a three-year low of 1.2 percent. Surging exports of gold and copper are buoying growth in a country where mining and
Mexico Sells 20-Year Peso Debt to Yield 9.7 Percent (Update1)
Mexico, the nation with Latin America's biggest economy, paid its lowest borrowing cost since April 2004 at a government auction of 20-year peso-denominated bonds on speculation the central bank will lower interest rates as inflation slows.
Mexico sold 2 billion pesos ($189 million) of 10 percent peso bonds that mature in December 2024 for a price of 1.0259 centavos on the peso. At that price, the bonds yield 9.7 percent, the lowest for a 20-year bond since 9.67 percent on April 15, 2004.
``Money is tight and inflation has gone down
Mexico Makes Good on Debt
The Mexican Treasury announces the country has paid off its $1.41 billion in foreign debt to salvage and maintain the country’s financial stability through next year's presidential elections.
Officials say Mexico paid off a portion of 10 bonds due between 2007 and 2033 using funding purchased from the central bank.
President Vicente Fox promises to cover financing needs through 2007 to protect the economy from the financial crises associated with earlier presidential transitions.
Morgan Stanley analyst Gordian Kemen says the announcement came as a surprise to many, but "is very positive.
The government still has $430 million more than what
Mexico Bonds May Extend Rally as Oil Prices Gain, Rating Rises
Mexico's U.S. dollar-denominated bonds may extend a 3 1/2-month rally as the country benefits from record oil prices and improving credit quality.
``We're more optimistic on Mexico relative to the market as a whole,'' said Christian Stracke, an emerging-market debt strategist at New York-based CreditSights Inc. ``The emerging- markets sector as a whole is overbought and we've seen it starting to pull back a bit. As the market pulls back, safer credits like Mexico tend to outperform.''
Record oil prices helped Mexico, the world's fifth-largest oil producer, boost international reserves
Mexico global bonds jump on exchange warrant plan
Prices on longer-maturity Mexican global dollar bonds soared on Thursday as the government announced it was offering warrants allowing holders to exchange them for domestic peso-denominated paper.
"Mexico has just announced an offering of three series of warrants that would allow their holders to exchange a specified face amount of external bonds for an amount fixed in U.S. dollars of a peso-denominated Bono on the expiration date," Barclays Capital said in a research note.
"It's going ahead today," a spokeswoman at Mexico's finance ministry said when asked if the warrants would be offered on Thursday
