Mexico Said to Sell $2 Billion of Bonds as Debt Demand Soars

Mexico is selling $2 billion of dollar bonds in its fifth international bond sale this year to capitalize on soaring demand after the Latin American nation’s 76-year oil monopoly was halted.

The securities due in 10 years yield 1.35 percentage points more than similar-maturity Treasuries, according to a person familiar with the matter, who isn’t authorized to speak publicly and asked not to be identified. Goldman Sachs Group Inc. and JPMorgan Chase & Co. are managing the offering, the person said.

Mexico has sold a record amount of debt this year after legislation ended the oil monopoly in December, a move that earned the government its highest-ever rating from Moody’s Investors Service. It has sold this year more than $9 billion of bonds in yen, euros, dollars and pounds, including the nation’s second 100-year bond.

The bonds being sold today have a provision preventing holders with less than 25 percent of the nation’s total debt from blocking a restructuring. Mexico included the requirement when it registered on Nov. 10 to sell as much as $6.3 billion of bonds. The provision is in line with recommendations from the International Capital Market Association published in August after Argentina defaulted on its international debt for the second time in 13 years.

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