Mexico Visits European Bond Investors

Mexico’s finance minister Ernesto Cordero was heard in Europe this week visiting accounts in a roadshow arranged by BNP Paribas. There are rumors that an issue worth up to EUR700m with a 5-7 year tenor will price this week, though bankers attached to the deal reject the chatter. Another underwriter besides BNP would be expected to join the deal if UMS went to euro market, which would likely depend on rates versus dollars. The sovereign has been telegraphing a euro-denominated bond issue since the start of the year as part of its diversified funding strategy. “It is a market that we continue to explore,” says a source at the issuer this week. Mexico Tuesday raised MXP25bn from a local syndicated bond placement priced to yield 6.13%.