Mexico to Swap MXP10bn Bonds

Mexico’s central bank is planning to swap up to MXP10bn in 7 and 8-year bonds for new 9-year notes. In an auction set to take place Wednesday, it will buy back the 8.00% of 2015 and 7.25% of 2016 bonos, denominated in both pesos and UDIs. Holders will receive 7.75% notes maturing in December 2017. The transaction follows Mexico’s first UDI bond exchange February 20, in which it bought back about $184m in 2025s and issued 2035s.