Mexico

Mexican telecoms giant América Móvil become the first private sector firm from Latin America to issue international bonds on Monday, raising €1.5bn of euro-denominated paper with a tighter new issue premium than most of the region’s sovereigns have managed recently.

América Móvil, the Mexican telecommunications firm, took advantage of a rally in emerging market debt to open books on its debut euro-denominated bond with a tight concession on Monday.

Fomento Económico Mexicano (Femsa) has mandated three banks for its debut euro denominated bond, which it will roadshow next week around the European Central Bank policy meeting.

Bolsa Mexicana de Valores, the only exchange in Mexico and the second largest in Latin America, expects growth in derivatives revenues and has retained bullish ratings from bank analysts as a result.

Bond bankers expect European investors will have more Latin American sovereigns to occupy them in the future, after Mexico showed that very low yields are still on offer in euros for those issuers that choose not to hedge their currency exposure.

Three positive days in markets pushed Mexico to sell its second deal of the year on Tuesday as Latin America sovereigns become more pragmatic about choosing issuance windows.

Mexico is looking to sell its fifth euro denominated bond in four years after releasing initial price thoughts for six and 15 year tranches on Tuesday.

Some medium term note investors believe the Mexican peso may now be undervalued, a pair of deals in the currency suggested this week.

Medium term note investors believe the Mexican peso may be undervalued, as they took punts with a series of deals in the currency.

Latin American debt capital market bankers proclaimed that Pemex had “validated a new reality” for EM commodity credits in the bond markets after the Mexican state owned oil giant issued $5bn at new issue concessions so high that, until recently, they would have been unthinkable.

trueEX, a fast growing swap execution facility (SEF), has executed the first dealer to client Mexican peso interest rate swaps trades on its platform.

Mexico-headquartered home appliances company Controladora Mabe is offering bondholders a fee to enable Chinese group Qindao Haier to buy General Electric’s share in the borrower.