Uruguay prints $1.25 billion bonds due 2031; Mexico prices $2 billion 10-year note

By Rebecca Melvin

New York, Jan. 16 – A pair of Latin American sovereigns and a pair of Middle Eastern bank issuers have priced deals in the past two days in the emerging markets debt primary, representing a strong showing for segments of the market that have seen little issuance for months.

“It’s alive,” a New York-based market source said of the Latin American debt market.

Latin America’s debt primary has been more or less shut since September.

The Middle East region saw Saudi Arabia sell $7.5 billion of notes in two tranches earlier this month and Oman priced a $1.5 billion seven-year sukuk in October. But there has been a dearth of Middle Eastern credits pricing deals in between.

Debt players on Wednesday eyed the Republic of Uruguay’s $1.25 billion of 4 3/8% bonds due 2031, which priced at a tighter-than-expected yield of 175 basis points over U.S. Treasuries.

Pricing was tighter than guidance for a yield of Treasuries plus 185 bps, plus or minus 5 bps.

On the heels of Uruguay’s success, the United Mexican States announced on Wednesday that it was offering U.S. dollar-denominated 10-year global notes. The sovereign ended up pricing $2 billion of notes to yield Treasuries plus 185 bps.

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