UPDATE 1-Mexico launches 2.5bn dual-tranche bond

martes 16 de febrero de 2016 12:24 GYT
 

(ADDS deal details, quotes)

By Paul Kilby

NEW YORK, Feb 16 (IFR) - Mexico launched a 2.5bn dual-tranche bond on Tuesday as hopes of more monetary easing in Europe buoyed market sentiment and cleared a path for the Latin American sovereign.

The deal is the region's first bond sale in either euros or dollars in over two weeks, after recent bouts of volatility in the broader markets closed doors to borrowers worldwide.

Despite more complicated market conditions, Mexico was able to garner a decent size, equaling a 2.5bn dual-tranche bond sale it completed last February.

Stability in oil prices and comments on Monday from ECB President Mario Draghi, who said he was prepared to ease monetary policy further in March, have brought some comfort to an investor base hurt by recent price swings.

"The new issue market is open," a banker away from the deal told IFR. "Draghi has helped reinvigorate the expectation of additional quantitative easing from the ECB."

The sovereign set pricing on a 1.5bn six-year bond at mid-swaps plus 180bp, the tight end of guidance of 180bp-185bp and inside initial price thoughts of plus 190bp area.

It also launched a 1bn 15-year at mid-swaps plus 245bp, tight to guidance of 250bp area and initial talk of 255bp area.   Continuación...