Mexico offers new 2028 notes, tap of 2048 notes in tandem with tenders for shorter bonds

By Rebecca Melvin

New York, Jan. 3 – Mexico is offering new dollar-denominated notes due 2028 and adding on to its 2048 notes, with initial yield talk of Treasuries plus 160 basis points area for the 10-year notes and Treasuries plus 205 bps for the 30-year notes, a market source said.

The tranche of 2048 notes is being consolidated to form one series with the outstanding $1.88 billion of 4.6% notes due 2048 issued on Oct. 2. Pricing at that time came at yield of 175 bps over Treasuries.

Final pricing on the benchmark-sized offerings is expected later Wednesday.

BBVA Securities Inc., J.P. Morgan Securities LLC and BofA Merrill Lynch are joint lead underwriters for the new note offerings.

Application is being made to list the new notes on the Luxembourg Stock Exchange and for trading on the exchange’s Euro MTF Market.

Concurrently with the sale of new notes, the sovereign is also tendering for six series of shorter-dated bonds.

Among the tender offers to purchase for cash are $1 billion outstanding of its 3½% global notes due 2021 notes at a fixed price of $1,035.08 per bond, as well as $1,343,671,000 of its 8 1/8% notes due 2019, $2,471,606,000 of its 3 5/8% notes due 2022, $3,449,928,000 of its 4% notes due 2023, $2,474,863,000 of its 3.6% notes due 2025 and $2,796,000,000 of its 4 1/8% notes due 2026.

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