Mexican Government Completes $6.6 Billion Debt Refinancing Agreement

Mexico’s Finance Ministry Gabriel Yorio said during a Tuesday morning press conference in Mexico City that the government of President Andres Manuel Lopez Obrador officially completed a debt refinancing operation worth $6.6 billion in international markets, including an over-subscribed bond offer.

Mexico’s Finance Ministry Gabriel Yorio said during a Tuesday morning press conference in Mexico City that the government of President Andres Manuel Lopez Obrador officially completed a debt refinancing operation worth $6.6 billion in international markets, including an over-subscribed bond offer.

Yorio explained that the operation, which has three components, includes the issuance of two new bonds.

The first bond is at 10 years, maturing in the year 2031 for $1.9 billion and a coupon of 2.659 percent, while the second is for 40 years, maturing in 2061, for $1.8 billion with a coupon of 3.771 percent.

He also told local reporters that the government secured one of the lowest interest rates in the market. 

“Mexico does these types of refinancing transactions when it identifies ideal opportunities in the market and they are carried out without incurring additional debt,” Yorio explained.

According to an Excelsior report, the government plans to buy back two bonds maturing in 2022, allowing it to reduce its amortization of foreign market debt scheduled for the year 2022 by 75 percent.


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