Mexico has returned this Friday to the "samurai bonds" market after two years of absence, managing to place 282.800 billion yen (1.524 billion euros). The operation is framed within the global trend of financing in Japanese currency to take advantage of its reduced interest rates.
According to the information disseminated by the news service "IFR" of the London Stock Exchange, the issuance has been structured in four tranches. The largest tranche amounts to 177.300 billion yen (955.7 million euros), maturing in 3.5 years and with a coupon set at 115 basis points over the reference "swap" rate.
Alongside this main tranche, titles worth 87.200 billion yen (470 million euros) have been placed for 5 years, with a yield of 140 basis points. There have also been issued 1.200 billion yen (6.5 million euros) for 10 years with a spread of 170 basis points, and another 17.100 billion yen (92.2 million euros) for 20 years, with a premium of 210 basis points.
"IFR" has noted that the demand for these Mexican "samurai bonds" has exceeded initial forecasts, despite the placing entities anticipating that Mexico's credit rating could dampen the appetite of Japanese investors.
The Mexican government will allocate the funds obtained to general financing needs and to projects linked to sustainable development goals included in the federal budget. Initially, the Executive contemplated also offering tranches with maturities of 7 and 15 years, but they were ultimately withdrawn before their market debut.
A "samurai bond" is a debt instrument denominated in yen that is issued directly in the Japanese financial market by a foreign issuer, whether a state or a company, and is subject to the regulations in force in Japan.