Mexico: Returning to former glory

With the economy recovering from the recession incurred by the peso devaluation, Mexican companies are poised to sell between $1 billion and $3 billion in equity to overseas investors in the next 12 months. After two years of stagnation, observers expect renewed domestic consumption in 1997 to revive expansion projects placed on the backburner since the 1994 crisis. If the markets are adequately bullish, more companies will feel comfortable enough to issue equity as a cheap way to retire expensive debt.