Mexico Kicks off Local 2020 Bond Auction

Mexico’s central bank says it will place Thursday up to MXP25bn in 10-year syndicated bonds via the first local debt market auction of its kind. The coupon is 8%. The government bonds, due June 2020, will be auctioned Tuesday and placed Thursday, says Banxico. Gerardo Rodriguez, Mexico’s deputy undersecretary for public credit, said earlier this month that the deal would raise MXP15bn-MXP25bn. The Mexican government is trying to broaden its investor base with the new domestic debt sale mechanism, which is designed to foster liquidity in new peso benchmarks. The issuer hopes that the bonds will be eligible for fixed income indices. Mexico has named Santander, JPMorgan, Bank of America Merrill Lynch and BBVA Bancomer as managers, with Banamex, ING and HSBC co-managers.