The Ministry of Finance and Public Credit reported that the Mexican government placed 12.5 billion pesos in a new fixed-rate bond for five years.
This is, according to authorities, in order to maintain a liquid reference for upcoming auctions and improve the profile of scheduled repayments between four and six years.
Government announces fund of 12.5 billion pesos for bonds
Hacienda clarified that this operation does not represent additional debt beyond what has already been authorized by Congress. The López Obrador government stated that it took advantage of favorable market conditions and investor confidence in the country's macroeconomic fundamentals to place the new bond in pesos, despite the current economic situation caused by the Coronavirus pandemic.
The authorities also said that this issuance does not imply an increase in the country's debt, nor does it put public finances at risk.
When will the new bond be delivered?
This new bond has a maturity date in March 2027 and involved the participation of both national and foreign investors.