Mexico raised $2.5bn via a 20Y bond at a yield of 4.285%, or T+205bp, 35bp inside initial guidance of T+240bp area. The bonds received orders over $5.6bn, ~2.24x issue size with proceeds from the issuance used to repurchase notes from nine series of outstanding bonds, ranging from 4% 2023s to 6.05% 2040s. Payments will range from $1,302 for every $1,000 in 6.75% 2034s to $1,086 for the 2023s. The outstanding amounts range from $943mn in 3.9% 2025s to $3.46bn in 4.5% 2029s. Mexico has yet to define the size of the buyback, but priority will be given to bondholders that purchase new notes. The deadline for the repurchase offer is Tuesday. Mexico´s BBB- rating was affirmed in November 2020 by Fitch. BBVA, Bank of America, Credit Suisse and JPMorgan were the bookrunners of the issue and deal managers of the buyback.
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