(Bloomberg) — Mexico is kicking off Latin America sovereign bond offerings for 2025 with a record deal, in the first issuance of President Claudia Sheinbaum’s administration.
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The country is seeking to raise $8.5 billion with the sale of bonds maturing in 2030, 2037 and 2055, according to people familiar with the matter. The sale is expected to price Monday, the people said, asking not to be identified discussing a private matter.
The bonds may yield around 170, 230 and 255 basis points over Treasuries, respectively, said the people, as pricing tightened from initial guidance.
It was the second high profile sale in developing nations of the day: Saudi Arabia, one of the largest bond issuers in emerging markets last year, is also selling eurobonds in a three-tranche transaction.
“The floodgates are open,” said Guido Chamorro, co-head of emerging-market hard-currency debt at Pictet Asset Management in London. Mexico has “large funding needs and it makes sense to issue before the new US administration takes office.”
The sale comes after Mexican lawmakers passed a budget bill last month that seeks to reduce a fiscal deficit while also maintaining support to state oil driller Petroleos Mexicanos. BofA Securities, Goldman Sachs, JPMorgan, Scotiabank and SMBC Nikko are handling the deal, the filing says.
Trump Toll
Mexican assets took a hit last year after an overhaul of the judicial system spooked investors and as US President-elect Donald Trump vowed to impose steep tariffs on all of the country’s products. Mexico’s dollar debt handed investors an average loss of 3% in 2024, compared to a 7.3% gain in an index of developing-world peers, data compiled by Bloomberg show.
Sheinbaum, who spoke to Trump in a November phone call, said she’s convinced a deal will be reached to avoid levies. On Monday, emerging-market assets climbed after the Washington Post reported Trump’s aides are discussing tariffs that would be applied only to “critical imports,” fueling bets that his tariff plans will be more targeted than previously expected.
Mexico last sold dollar-denominated bonds about a year ago in a record transaction that raised a total of $7.5 billion. The nation, which traditionally taps global markets early in the year, also sold euro- and yen-denominated notes in January and August 2024, respectively.
