Mexico will sell warrants next week that allow investors to swap bonds denominated in foreign currencies to peso debt, the fifth such sale since 2005.
Warrant holders will have the right to exchange debt due 2012 to 2034 denominated in dollars, euros, Italian lira and pounds next year for peso debt due in 2020, 2029 and 2038, said a person familiar with the offering, who declined to be identified because he isn’t allowed to speak publicly.
The date for the exchange is April 8 and May 4, depending on which warrant the holder buys, the person said. Road shows for investors will be held in Mexico City, London, New York and Boston starting tomorrow, the person said.
Mexico last sold warrants in 2008 as it sought to boost trading in domestic securities.
The yield on Mexico’s benchmark government bond rallied to a record earlier this year as Citigroup Inc. added the peso debt to its World Government Bond Index, drawing investors from Asia and other regions to the local market. Mexico has sold $5.1 billion of debt abroad this year, including 150 billion yen ($1.8 billion) of 10-year Samurai debt and $1 billion of 100-year bonds.
The yield on the debt due in December 2024 fell as much as 201 basis points this year to 6.258 percent in October. The yield rose seven basis points to 7.08 percent today, according to Banco Santander SA.