Mexico

Mexico’s largest airline Aeromexico will begin meeting fixed income investors on Monday as it plots what would be its first ever international bond issue.

After Mexican state oil company Pemex paid very little to issue a 40 year bond, rather than a 30 year, on Tuesday, two days later, the Dominican Republic opted for the same rare maturity.

Debt capital markets bankers said that the pricing Mexican state oil company Pemex achieved on a rare 40 year tranche was one of the highlights of a busy Tuesday in Latin American primary markets.

Mexican bottling company Coca-Cola Femsa has defined the buy-back price of its 2023 senior unsecured bonds as it looks to mop up some outstanding debt.

Latin America bankers said that this week Mexico showed again that it was a leading issuer in the region after the sovereign sold its second deal of the year to take advantage of remarkable funding conditions.

Fomento Económico Mexicano (Femsa), the Mexican conglomerate, sold $1.5bn of 30 year bonds on Tuesday more than three months after completing a roadshow as DCM bankers said that the decision not to bow to investor demands last year had paid off.

Remarkable funding conditions drove Mexico to the euro market on Tuesday just a week after it issued in dollars as a bulging order book again suggested that investor fears over the government’s management of the economy have subsided.

Mexico’s head of public credit told GlobalCapital that he felt the government’s economic management was winning over investors after the sovereign notched a heavily oversubscribed dollar deal last week.

Mexico returned to its role of opening Latin American bond markets for the year on Monday, triggering a slew of issuance from the region as bankers predict the bulk of 2020 supply will come in the first half.

Two companies turned up the heat another notch in Latin American primary bond markets on Wednesday, as both Coca-Cola Femsa and CMPC sold 10 year deals inside the ranges they had indicated at guidance.

A strong response to its tender offer allowed Mexico to increase the size of its new 10 year issued on Monday from $1.75bn to $3.05bn late on in the evening as bankers say that the deal shows investors are calm about the country’s prospects.

Coca-Cola Femsa, the world’s largest franchised Coca-Cola bottler, is looking to sell new bonds to fund a buy-back of existing debt as Latin America issuers waste no time in taking advantage of a liquidity-rich bond market.