Mexico refinanced 33.32 billion pesos in short-term debt instruments such as Cetes and other bonds, and updated the three-year benchmark UDIBONO to maintain the average debt term, the Ministry of Finance and Public Credit (SHCP) reported.
This is the government’s first debt refinancing operation since Édgar Amador Zamora was appointed last week as the new Secretary of Finance and Public Credit, replacing Rogelio Ramírez de la O.
In a statement, the agency in charge of the country’s public finances said that on March 13, a “syndicated operation” was carried out for the new three-year benchmark UDIBONO, with issue code S 290830 and a coupon of 4%, at a yield of 5.015%.
“With both operations, the new benchmark reaches an outstanding amount of nearly 41 billion pesos,” explained the SHCP. “This instrument, indexed to inflation, offers investors an attractive option and allows the government to increase the portfolio’s maturity by 1.85 years.”
In addition, it was added that in this same operation, 33.32 billion pesos were repurchased in various debt instruments such as Cetes, M Bonds, and short-term UDIBONOS.
Of the total refinanced amount, 2.077 billion pesos correspond to maturities scheduled for 2025; 14.769 billion pesos maturing in 2026, and 16.474 billion pesos maturing in 2028.
The SHCP has 97.209 billion pesos in reserve for eventualities.
“These were exchanged for the new three-year benchmark at the real rate, which contributes to optimizing the maturity profile and providing greater liquidity to the new benchmark,” stated the department headed by the new Secretary of Finance, Édgar Amador Zamora.
The Ministry affirmed that the conditions reached in both operations reflect the confidence of investors, both domestic and foreign, in Mexico’s macroeconomic soundness, as well as in the commitment to maintaining the debt on a sustainable path and complying with the debt guidelines approved by Congress in the 2025 Economic Package.
Source: eleconomista
