Mexico to issue bonds with new collective action clauses
By Christopher Spink
LONDON, Nov 11 (IFR) - Mexico has filed a prospectus with US regulator, the Securities & Exchange Commission, to issue up to US$6.31bn of bonds containing new collective action clauses, according to an official statement.
Last month the International Monetary Fund recommended that sovereigns include the new clauses aimed at making restructuring agreements binding on all bondholders.
The IMF also said new bond contracts should amend the "pari passu" clause seen in most bonds to mean only equal ranking and not rateable payment.
Kazakhstan became the first sovereign to follow these recommendations through a US$2.5bn transaction last month. (Reporting by Christopher Spink; editing by Sudip Roy)
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