Bloomberg News

Mexico Sells $2 Billion of Dollar Bonds Due in 2044 in Overseas Markets

March 05, 2012

Mexico, Latin America’s second- largest country, sold $2 billion of dollar-denominated bonds, tapping into record low borrowing costs for its second international offering this year.

The government issued the 32-year bonds to yield 4.84 percent, or 170 basis points above similar-maturity U.S. Treasuries, according to data compiled by Bloomberg. The average yield on the country’s dollar-denominated government debt fell to a record low 4.29 percent on March 2 from 5.18 percent a year earlier, according to data compiled by JPMorgan Chase & Co.

The sale brings Mexico’s dollar debt issuance to $4 billion this year, the most among emerging-market sovereign borrowers.

“It’s still a good moment to lock in low absolute funding” costs, Siobhan Morden, head of Latin America strategy at Jefferies & Co. Inc. in New York, said in a telephone interview from New York.

Mexico is rated Baa1 by Moody’s Investors Service and BBB by Standard & Poor’s. Citigroup Inc. and HSBC Holdings Plc managed the sale, Bloomberg data show.

To contact the reporters on this story: Boris Korby in New York at bkorby1@bloomberg.net; Ben Bain in Mexico City at bbain2@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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