Mexico

Minera México, the largest subsidiary of Southern Copper Corporation, priced flat or inside its parent company’s curve on Thursday as investor appetite for Mexican credit shows no sign of easing.

Mexican state-owned oil company Pemex found plenty of follow-through demand in secondary markets as all three tranches of its $7.5bn bond issue traded up on the break.

Minera México, the largest subsidiary of the Southern Copper Corporation, will hold investor meetings this week as it looks to join the slew of Mexican credits taking advantage of benevolent bond markets.

Mexican oil company Pemex is set to “defend its ratings” with an imminent new issue, bond exchange and buy-back to be partially funded by a capital injection from the government.

Alpek, the petrochemicals business of Mexican conglomerate Grupo Alfa, sold a $500m 10 year bond on Wednesday at the tight end of expectations to become the latest in a line of Mexican issuers to tap the primary market in September.

BBVA Bancomer and Industrias Peñoles sold a combined $1.8bn of bonds on Thursday to follow up Grupo Bimbo’s blow-out trade earlier in the week as investors found a sweet spot in high quality Mexican corporate debt.

Alpek, the petrochemicals business of Mexican conglomerate Grupo Alfa, could become the next company from the country to make the most of attractive market conditions as it looks to the bond market to refinance short-term bank debt maturities.

Alpek, the petrochemicals business of Mexican conglomerate Grupo Alfa, will look to the bond market to refinance short-term bank debt maturities.

Latin American DCM bankers welcomed Tuesday’s blow-out bond issue from Mexico baking company Grupo Bimbo, saying that they believed it would trigger other borrowers to accelerate funding plans.

Three Latin American borrowers are meeting investors in advance of likely bond deals as primary market activity in the region looks set to pick up after a quiet August.

BBVA’s Mexican arm will look to sell Basel III-compliant tier two debt to fund a buy-back of old style subordinated bonds after launching a tender offer on Wednesday.

Industrias Peñoles announced on Tuesday that it will return to the bond market in September after a seven year absence. One investor called the mandate a “healthy sign” ahead of the September opening of the primary market.