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LatinNews Daily - 14 January 2020

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In brief: Mexico issues Euro bonds

* Mexico’s finance ministry (SHCP) has reported that the country has issued €1.75bn (US$1.57bn) in Euro-denominated bonds in European financial markets. The operation involved the issuing of €1.25bn in a new 10-year reference bond expiring in January 2030 and offering a coupon rate of 1.125%; and the re-issue of €500m in bonds maturing in April 2039 with a coupon rate of 2%. A SHCP statement highlighted that the rate of the 10-year reference bond is the lowest ever offered by Mexico in the European bond market, while the rate offered by 2039 bonds represents a 96-point reduction on the original yield offered when these bonds were first issued in April 2019. In total €6.6bn in offers were received for the bonds, with the SHCP noting that the funds raised will cover approximately 80% of the external finance needs envisioned in Mexico’s 2020 budget. With the operation Mexico became the first Latin American country to issue sovereign bonds in the European bond market in 2020.