Southern Copper Digs Below 200bp

Southern Copper is heard looking for a yield of UST plus 175.0bp-187.5bp for a new 10-year bond, which could come as soon as today, according to investors. The Grupo Mexico unit is also heard looking for about 225.0bp-237.5bp yield on a 30-year bond to be issued at the same time. The benchmark sized BBB/Baa2 deal is spotted at up to $1.5bn total by ratings agencies, and was to finish roadshowing Monday. Southern Copper is expected to pitch to both high-grade and EM buyers. It aims to market itself as a high grade comp to global miners. Credit Suisse, Goldman Sachs and Morgan Stanley are managing the sale, the issuer’s first international bond since 2006. Southern Copper is domiciled in the US, owned by a Mexican company, and operates primarily in Peru.