Mexico Plans Syndicated Auction for 30-Year Peso Bond in 2Q

Mexico plans to hold a syndicated auction of 30-year fixed-rate peso bonds in the second quarter while maintaining the sale of other securities, the Finance Ministry said today in a statement on its website.

The ministry didn’t specify the amount to be sold under the syndicated operation and said it plans to carry out only one of this type of transaction in the second quarter, according to the statement.

The auction amount of the rest of its securities and the frequency of their sales, including short-term bills known as Cetes, will remain unchanged from the previous quarter, the ministry said.

The debt issued each week may be more or less than the weekly average announced, with the restriction that at least 50 percent of the instrument scheduled for sale must be offered that week, the ministry said in its statement.

“Even though the weekly amounts to be issued could change, the total amount to auction during the quarter will be fixed and equal to the average weekly amount announced times the total number of weeks in the quarter,” the ministry said.

The government is opting to issue 7.5 billion pesos ($588 million) of 10-year fixed-rate bonds every six weeks during the quarter. In the first quarter, Mexico sold 10-year debt through a syndicate of banks.

The government may exchange and repurchase securities that could include fixed-rate bonds, inflation-linked debt and Cetes.

IPAB, the Mexican government body that guarantees bank deposits, in a separate e-mailed statement today said weekly debt sales will rise to 4.4 billion pesos starting on April 25. IPAB had held sales of securities maturing in three, five and seven years totaling 4.2 billion pesos in the first quarter.

To contact the reporter on this story: Nacha Cattan in Mexico City at ncattan@bloomberg.net

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net

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