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UPDATE 2-Government of Mexico carries out a debt refinancing operation for 6,600 million dollars

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MEXICO CITY / NEW YORK, Nov 16 (.) – The government of Mexico carried out on Monday a debt refinancing operation in the international market for 6.6 billion dollars, which included the placement of bonds with high demand, the Secretary said. of the Treasury in a statement.

The operation, which had three components, included the issuance of two new notes: one for 10 years for 1,825 million dollars maturing in 2031 and a coupon of 2,659%, and another for 40 years for 1,800 million dollars maturing in 2061 and a 3.771% coupon.

That transaction reached a maximum demand of some 16,000 million dollars, equivalent to 4.4 times the amount placed, at a time when interest rates in Mexico look attractive compared to those of other Latin American countries, according to specialists.

“The coupon rates of both bonds represent the lowest levels so far achieved by the Federal Government for debt in dollars,” said the Treasury in its statement.

The second component of the transaction was an exchange for $ 3 billion in bonds maturing between 2023 and 2050 for the new 10-year paper and of securities that matured between 2046 and 2050 for the new 40-year issue.

And a third component will be the execution of an early maturity clause of two bonds that matured in 2022, which would reduce the burden of payments to the government by 75% for that year and which was also funded with the new issues.

“# Mexico carries out this type of refinancing transactions when it identifies suitable opportunities in the market and they are carried out without incurring additional debt,” said Gabriel Yorio, Undersecretary of Finance, on his Twitter account. (Report by Abraham González and Sharay Angulo in Mexico City, and Miluska Berrospi in New York; Edited by Miguel Ángel Gutiérrez)