UMS Chops Samurai Yield

Mexico has sold JPY150bn of yen-denominated bonds in Japan, getting a 1.51% yield that is down from the 2.22% it did in a similar deal last year. The 2020 bond guaranteed by JBIC priced at par with a 1.51% coupon, to yield yen Libor plus 50bp, the tight end of the 50bp-60bp talk. UMS got JPY300bn in demand and sold to 43 investors including banks, insurance companies and investment funds, according to Gerardo Rodriguez, Mexico’s deputy undersecretary for public credit. He notes that this is more than the 14 accounts buying in to last year’s JPY150m 10-year trade. The finance ministry cites the “favorable developments in the Japanese market as well as improved demand by investors” for the lower yield. Mizuho and Nomura managed the sale.