Mexico adds euros to century club

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Critics carp at cheap pricing; High yield and dollar trades fill pipeline.

By Rob Dwyer

Mexican issuers and euro currency deals continue to dominate Latin America’s international DCM markets and – in the case of the Mexican sovereign’s 100 year trade – dramatically so.

Mexico took advantage of benign market conditions, created by the European Central Bank’s quantitative easing programme, to become the first sovereign to sell a 100-year euro-denominated bond. Bankers now also report an active pipeline of high yield and US dollar-denominated trades waiting to come to market, which will add diversity in the coming months.

Mexico’s €1.5 billion century bond was the sovereign’s third euro-denominated trade this year – following two €1.25 billion deals (one nine year and the other 30 year) printed at the end of February. Taken with $2 billion in dollar bonds it sold in January, the United Mexican States has now completed its 2015 fund-raising needs.

The return to the...