DF Clinches Local Debt

The government of Mexico’s Distrito Federal has issued MXP2.5bn ($193m) in the domestic bond market. The 2027 bonds priced at 6.85%, or Mbonos+85bp, in line with expectations. The deal was done slightly differently to most, according to a source familiar with the sale, with books closing once the MXP2.5bn amount was reached, though the short time to do so implied heavy demand. Guaranteed by the federal government, the bond is rated AAA on a national scale. Banorte-Ixe and Santander managed the transaction. In December of last year, DF sold MXP1.77bn in 5-year bonds at TIIE+30bp.