GLOBALCAPITAL INTERNATIONAL LIMITED, a company

incorporated in England and Wales (company number 15236213),

having its registered office at 4 Bouverie Street, London, UK, EC4Y 8AX

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Mexico

  • A group of bondholders publicly opposing the proposal by Mexico City Airport Trust (Mexcat) to amend documentation in its bond documents now represents over half the issuer’s debt, according to the law firm representing them.
  • Mexico City airport bondholders are right to turn their noses up at attempts to modify documentation. But though the issuer’s offer will not be the new government’s last squabble with markets, it is still a good sign.
  • Mexico’s new government acted swiftly to show that it would at least engage with financial markets this week. But investors' reaction to a tender offer for Mexico City airport bonds suggested it was the beginning of a troublesome relationship.
  • Mexico City Airport Trust (Mexcat) bondholders finally found respite in secondary markets on Monday as the government-owned company, which had raised $6bn of debt for the now cancelled Texcoco airport, launched a tender offer and consent solicitation for the notes.
  • Edgar Madinaveitia, a managing director in Latin American debt capital markets at Credit Suisse, has left the bank, according to sources away from the bank.
  • In a shortened week in the US there was still time for heavy volatility in Lat Am bond markets, with sharp moves in Mexico particularly concerning for DCM bankers.
  • Investors in Latin American bonds are giving thanks this week, as Wednesday brought some small respite on Wednesday ahead of Thursday’s US holiday. Some of the region’s more battered paper rallied slightly — though the consensus is still that issuance is finished for the year.
  • Bankers insist that the market, though deserted, is still open for at least a couple more weeks, but with the new issue premiums investors are demanding, it is difficult to persuade issuers to print.
  • Lat Am bond bankers did not seem overly worried about their Mexican deal pipeline despite bond markets being shocked by the cancellation of Mexico City’s new airport last week.
  • Bonds issued to build Mexico City’s now cancelled new airport have risen from last week’s lows after as analysts declared the risk of default to be very low after the incoming president met with airport contractors on Monday.
  • Leasing company Engenium Capital was holding follow-up calls with investors on Monday as it stays engaged with the market ahead of a proposed dollar debut, but bankers said timing was tricky for any Latin American names — let alone Mexican.
  • Mexico this week sent global markets a stark reminder that its politicians were not afraid to follow through on radical policies as the incoming president cancelled the capital city’s new $13bn airport. The move caught fund managers across the world off guard, despite the fact it had been a much-advertised campaign promise, writes Oliver West.