The Biggest Mexico Bond Default in 20 Years Looms
- ICA misses interest payment and says it will use grace period
- Builder's $1.35 billion of debt has lost 73% this year
This article is for subscribers only.
As far as bond traders are concerned, Empresas ICA SAB’s missed interest payment this week is just a prelude to what’s likely to be the biggest default in Mexico in at least two decades.
On Monday, the builder said it will use a 30-day grace period to make a $31 million interest payment on $700 million of its notes. The announcement triggered a tumble in the $1.35 billion of overseas bonds issued by Mexico’s largest construction company, leaving the securities down 73 percent this year.