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Mexico raised €2.4 billion ($2.52 billion) in a two-part sale of euro-denominated bonds on Monday, as it tapped the international market for the second time this month. The sovereign sold €1.4 billion worth of eight-year bonds and €1 billion worth of 12-year notes, the finance ministry said in a press release. The deal was roughly 3.3 times oversubscribed, as investors placed as much as €8 billion in orders, it added. “Today, Mexico continued to develop the yield curve in the European market with the placement of two new references under favorable financial conditions, which allowed a decrease of almost 10% between the announced price and the closing price,” the ministry said. The Mexican government priced 4.625% 2033 notes at 99.057 to yield 4.769%, or 230 basis points over mid-swaps. It opened the initial price talk in the 255 basis points area and set guidance at around 235 basis points before launching the deal, according to a source involved in the deal. The 2037 notes carry a coupon of 5.125% and priced at 99.525 to yield 5.181%, or 265 basis points over mid-swaps. It opened the deal in the 290 basis point area and tightened the spread at around 270 basis points before launching the deal, the source added. BNP Paribas, Crédit Agricole, Deutsche Bank, HSBC and Société Générale were joint bookrunners on the offering. The sovereign will use the proceeds to fund expenditure under this year’s budget, including to refinance domestic and external debt, it said in a prospectus filed with the US Securities and Exchange Commission. Mexico kicked off its 2025 fundraising program earlier this month with its biggest-ever cross-border issue — a three part sale that brought in $8.6 billion. It last sold euro-denominated bonds in January last year.
