Deals of the year 2001: Latin America
BEST Sovereign Bond
Winner: United Mexican States
Deal: 30-year sovereign bond
Amount: $1.5 billion
Date: August 2001
Bookrunners: Goldman Sachs, Citigroup/Salomon Smith Barney
When Mexico issues debt these days, it's an easy sell. Its financing needs are moderate and it has a captive audience of US crossover investors who love its emerging-market spreads and are convinced by the country's increasing integration into north America.
So when Goldman Sachs and Citigroup/Salomon Smith Barney launched Mexico's first 30-year bond since 1996, they knew it wouldn't be hard to shift. In fact, they received orders worth over $3 billion in six hours - in the middle of August, no less - and ended up issuing $1.5 billion of bonds.
There was certainly a need for a new long bond on Mexico's curve. The 2026s were not a good benchmark, since they were trading at a dollar price of about 120, which depressed interest in them. The market also wanted an easy benchmark from Mexico that it could compare with the 30-year bonds Argentina and Brazil issued in 2000 and 2001.