Post by ukipa on Mar 12, 2014 18:13:02 GMT 4
Mexico Said to Offer First Benchmark 100-Year Bond in Pounds.
Mexico is looking to sell its first-ever 100-year bonds in British pounds, three years after issuing similar-maturity debt in dollars.
The government is offering a benchmark security due in March 2114 that will yield about 5.75 percent, according to a person familiar with the deal, who asked not to be identified because the information isn’t public. The issue may price today, the person said.
Mexico is selling new century bonds after Moody’s Investors Service upgraded the country to its fourth-highest investment grade Feb. 5, citing steps to open up the energy industry to foreign investment and broaden sources of tax revenue. The nation’s $2.7 billion of dollar-denominated debt due in 2110 has rallied 4.41 cents this year to 96.8 cents on the dollar, reducing yields to 5.94 percent.
“Given all the attention that Mexican economic reforms have received, it’s no longer just a country that people from North America would invest in,” Joe Kogan, the head of emerging-market strategy at Bank of Nova Scotia, said in a telephone interview from New York. “It’s part of a long-term strategy to issue in various currencies now that the investor base is much wider.
The yield on 30-year gilts fell two basis points to 3.51 percent at 12:45 p.m. in London, less than the 3.68 percent rate for similar-maturity Treasuries. The pound has gained 5.1 percent versus the dollar in the past six months, the best performance after the Swiss franc among 16 major currencies. Sterling climbed 6.9 percent against the peso in the period.
New Laws
Barclays Plc and Goldman Sachs Group Inc. are managing the sale of the sterling bonds, according to the person with knowledge of the offering.
Moody’s raised Mexico to A3, the country’s highest ever rating and one level above rankings by Standard & Poor’s and Fitch Ratings.
President Enrique Pena Nieto’s new laws to open the oil industry to private investment and curb the market power of dominant telecommunications providers will add about 1 percentage point to the long-term economic growth rate, according to Moody’s.
Article: www.bloomberg.com/news/2014-03-12/mexico-said-to-sell-benchmark-100-year-bond-in-british-pounds.html
Mexico is looking to sell its first-ever 100-year bonds in British pounds, three years after issuing similar-maturity debt in dollars.
The government is offering a benchmark security due in March 2114 that will yield about 5.75 percent, according to a person familiar with the deal, who asked not to be identified because the information isn’t public. The issue may price today, the person said.
Mexico is selling new century bonds after Moody’s Investors Service upgraded the country to its fourth-highest investment grade Feb. 5, citing steps to open up the energy industry to foreign investment and broaden sources of tax revenue. The nation’s $2.7 billion of dollar-denominated debt due in 2110 has rallied 4.41 cents this year to 96.8 cents on the dollar, reducing yields to 5.94 percent.
“Given all the attention that Mexican economic reforms have received, it’s no longer just a country that people from North America would invest in,” Joe Kogan, the head of emerging-market strategy at Bank of Nova Scotia, said in a telephone interview from New York. “It’s part of a long-term strategy to issue in various currencies now that the investor base is much wider.
The yield on 30-year gilts fell two basis points to 3.51 percent at 12:45 p.m. in London, less than the 3.68 percent rate for similar-maturity Treasuries. The pound has gained 5.1 percent versus the dollar in the past six months, the best performance after the Swiss franc among 16 major currencies. Sterling climbed 6.9 percent against the peso in the period.
New Laws
Barclays Plc and Goldman Sachs Group Inc. are managing the sale of the sterling bonds, according to the person with knowledge of the offering.
Moody’s raised Mexico to A3, the country’s highest ever rating and one level above rankings by Standard & Poor’s and Fitch Ratings.
President Enrique Pena Nieto’s new laws to open the oil industry to private investment and curb the market power of dominant telecommunications providers will add about 1 percentage point to the long-term economic growth rate, according to Moody’s.
Article: www.bloomberg.com/news/2014-03-12/mexico-said-to-sell-benchmark-100-year-bond-in-british-pounds.html