Mexico to Issue Up to Six Samurai Bonds in Japan
Mexico is moving forward with its first issuance of Samurai bonds in Japan since August 2024. This week, it plans to issue yen-denominated bonds divided into a maximum of six maturities, ranging from 3.5 years to 20 years. The settlement date is mentioned as August 28. Depending on demand and market conditions, some maturities may be excluded from the issuance structure, and the total issuance amount, final maturity composition, and interest rate conditions will be confirmed after the issuance is finalized. The Mexican Ministry of Finance announced that in August 2024, it issued five maturities of Samurai bonds in the Japanese market, including 3-year, 5-year, 7-year, 10-year, and 20-year bonds, with a total issuance amount of 152.2 billion yen, equivalent to 1.05 billion USD. This issuance initiative aligns with Mexico's foreign currency bond management flow, having raised 9 billion USD in January. In June, it issued 4.8 billion USD in 11-year bonds and reopened 1.5 billion USD in bonds maturing in 2056. The yield on Japan's 10-year government bonds rose to 2.945% during trading on August 18, marking the highest level since 1996. Mexico's credit rating outlook has been downgraded to negative, and Japanese interest rates are expected to play a key role in the issuance conditions.
-- Price
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