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Friday, August 10, 2012 - 15:14

Mexico Completes US$2.192 Bln Bond Swap,1st Including Century

MEXICO CITY (MNI) - The government completed a foreign debt swap Friday totaling US$2.192 billion, in the first to include the century bond, the Finance Secretariat announced.

The global bond swap extended the average maturity of the debt profile by "more than two years" and reduced financing costs, the statement said, noting the goal also was to improve liquidity of reference bonds, and remove those will shorter terms or lower liquidity.

In addition, the yields and spreads over U.S. Treasuries of the 10, 30 and 100 year bonds were the lowest levels ever achieved for those maturities, the ministry said. The yields were 2.52%, 3.93% and 4.67% respectively, with spreads of 87, 118 and 192.

The operation consisted in swapping the 2013-2017, 2019, 2020, 2022, 2026, 2031, 2033, 2034 and 2040 global bonds (UMS) for the 2022, 2044 and 2110 UMS.

The goverment received US$2.469 billion in offers, of which US$1.799 were non-competitive. The government accepted an equal amount of competitive and non-competitive bids, the statement said.

** MNI - Mexico City **


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