Mexico

Mexican development bank Nacional Financiera (Nafin) will look to price its first ever Japanese yen deal this week.

Mexico’s followed its long awaited return to dollar bond markets with a solid performance in secondary markets on Friday as the sovereign wrapped up a liability management exercise.

Mexico issued in dollars for the first time since the US presidential elections on Thursday. Bankers said the sovereign had been able to take advantage of an improvement in market sentiment based on hopes that US president Donald Trump’s policies towards the country might not be as harsh as feared.

Bank of America Merrill Lynch has hired Ricardo Fernandez Rebolledo from Credit Suisse as head of Mexico investment banking.

Auto parts supplier Nemak became the third Mexican borrower to issue in euros in 2017, tightening pricing three times on the way to a €500m seven year non-call three bond.

Mexican autoparts manufacturer Nemak will begin a roadshow next week ahead of a planned euro-denominated bond debut, looking to become the third Mexican issuer of 2017 — and the third in euros.

Mexican cement company Cemex said on Tuesday that it would buy back $475m of existing dollar bonds after receiving a strong response to its proposed tender offer.

Mexican issuers have earned the confidence of investors through years of astute market relations.

Mexican oil giant Pemex and north African sovereign Tunisia both used the euro market for diversification plays this week, though the differing receptions each received highlighted the difficulties faced by EM high yield borrowers using the currency. Olly West and Virginia Furness report.

Even heavy indications from US Federal Reserve chair Janet Yellen the central bank will raise interest rates at its next meeting were not enough to derail the strong primary market in emerging market bonds.

European bond investors gave Mexico’s prospects a vote of confidence on Tuesday, placing €17.6bn of orders as state-owned oil giant Pemex raised €4.25bn of debt in the largest ever euro-denominated trade from an emerging markets issuer.

Mexico’s state owned oil company Pemex has turned to the euro bond market just two months after becoming the first Latin American borrower to sell a bond at all after the election of Donald Trump as US President.