Mexico To Sell To US Retail Investors

Mexico is to become the first foreign sovereign to offer investment-grade bonds directly to US retail investors. The government is taking advantage of its investment-grade rating to diversify its investor base and lower the cost of debt financing. From February 13 the government will sell, under its UMS InterNotes program, dollar-denominated bonds in $1,000 denominations, to individuals in the US wishing to invest in Mexico’s thriving economy. The notes will be issued with maturities ranging from three to 10 years and will include a survivor’s option. The bonds are expected to pay annual an interest rate of 0.7 to 1 percentage point above comparable US treasuries. Chicago-based Incapital and Banc of America Securities are lead managers and agents of the new program.