LatinNews Daily - 11 September 2024

*Mexico’s finance ministry (SHCP) has announced the issuance of a US$1.49bn bond on the international market to pay off its purchase of 13 power plants from Spanish energy company Iberdrola. The SHCP stated that the bond, which is due to mature in 2041, is the largest issued in relation to Mexico’s energy sector and one of the biggest in Latin America. The final coupon rate was 7.25%, down from initial proposed levels of 7.625%, which the SHCP said had been achieved “thanks to strong investor appetite for the country, the sector and the transaction, which allowed us to optimise the terms of the issue”. According to the SHCP, total demand for the bond exceeded the bond amount by four times, reaching US$6.16bn. The proceeds from the bond issuance will be used to refinance the short-term loan originally contracted with the Mexican branch of British bank Barclays, Spanish banks BBVA and Santander, and Japanese bank SMBC to help fund the US$6.2bn acquisition. “With the completion of the financing, we continue to advance in key energy infrastructure projects, contributing to energy sovereignty and strengthening the national electricity grid,” stated the SHCP.