Mexico Warrants Success

Mexico has successfully concluded its latest warrants issue, exchanging $722 million worth of euro-denominated bonds (€600 million) into local-currency bonds. The strategy of issuing warrants is aimed at reducing the country’s vulnerability to external market risk. The new peso-denominated M Bonds carry 8% interest and mature in 2013 and 2023. In November, Mexico became the first developing nation to attract investment into its local debt market when it raised $69 million by offering to swap up to $2.5 billion of dollar-denominated debt into peso bonds. The deal was led by Credit Suisse and Goldman Sachs.