Sigma Alimentos became the first Mexican issuer to tap the international debt markets in 2017, printing €600m ($646.2m) in 2024 bonds and potentially providing a benchmark for the next crop of corporate issuers from the country.

Mexican borrowers have stayed out of the foreign credit markets this year as the country’s spreads widened after the election victory of President Donald Trump, whose pledge to renegotiate the North American Free Trade Agreement (NAFTA) has stoked uncertainty about Mexico’s economy.

The food processor owned by Mexican conglomerate Alfa set initial price talk (IPT) on Thursday at 250bp to 262.5bp over mid-swaps, according to a number of debt capital markets (DCM) sources.

Sigma is no stranger to fixed income investors and through its link to Spain’s Campofrio, it is also well-known to European bond buyers. But the company’s new issue was offering terms significantly wide of similar credits such as Mexican bottler Femsa, despite Sigma’s link to euro-denominated fundraising.

Femsa’s 2023 euro-denominated trade was spotted at 120bp over Z-spreads on Thursday, while Sigma’s own 2026 dollar note was seen at 258bp over G-spreads, bankers said.

“Investors were curious to see how it would price since there is still a lot of uncertainty regarding Donald Trump’s policies towards Mexico,” one DCM banker said.

Leads BNP Paribas and JPMorgan tightened Sigma’s trade to 237.5bp to 250bp over mid-swaps at guidance. Bankers said the trade was a “new normal” for Mexican corporate issuers, at least until investor uncertainty wears off.

“This was a strange one because of Sigma’s links to euros through Campofrio,” a second banker said. “The name is well-known in Europe, so the uncertainty with Mexico has clearly influenced this deal.” Sigma bought Campofrio in June 2014.

Baa3/BBB/BBB rated Sigma offered the 2024 note at 225bp over mid-swaps, at a yield of 2.684%, or a reoffer price of 99.628. Books peaked at $2.75bn.

“They needed to come to fund their European operations and investments so they were willing to possibly take a hit,” one investor said.

With a trade from Latin America’s second-largest economy now in the books, bankers are hopeful their aggressive pitching to Mexican clients will bear fruit.

“Our Mexican clients still need to raise capital,” a third banker said. “We are trying to get them off the sidelines, but for many names it is still a matter of timing as they are waiting for less uncertainty.”