Mexico issues $6.3 billion in two-part sovereign bond deal

Mexico's finance ministry issued $6.3 billion in bonds, using proceeds to buy back shorter-term debt and reduce refinancing risks, attracting strong demand from 266 institutional investors worldwide.

‌Mexico's finance ​ministry on Tuesday issued a combined $6.3 billion worth of bonds in ‌a dual-tranche sovereign deal, the ministry said in a statement.

The ministry issued an 11-year bond with a coupon rate ‌of 6.25% and maturing in 2037 worth $4.8 billion, ‌and also reopened a bond maturing in 2056 with a coupon rate of 6.75% for a total of 1.5 billion dollars. The proceeds ⁠will ​be used ⁠to buy back shorter-term debt maturing in 2027 and 2028, as ⁠part of the government's strategy to reduce refinancing risks and ​push its debt obligations further into the future. The ⁠operation does not represent new additional debt.

Met with strong demand, the ⁠deal ​attracted up to $20.693 billion in orders — 3.3 times the amount sold — from some 266 institutional investors worldwide. The ⁠ministry said the operation was carried out within the debt limit ⁠authorized ⁠by Congress, ensuring responsible and prudent fiscal management.