The Mexican peso market has got off to a dynamic start in 2006, with two large issues. KfW kicked the year off on January 18 with a Ps500m five year trade, paying a coupon of 8%, and now the Province of Quebec has entered the fray with a Ps1.5bn transaction led by Merrill Lynch. The deal matures in 10 years and pays a coupon of 8.27%. These issues confirm predictions that the peso's appearance last year was no short term high yield play, and the Quebec deal's dual listing — in Mexico and London — suggests that interest in peso denominated bonds is not confined to the European retail investor market.
January 27, 2006