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Latinnews Daily - 03 October 2017

In brief: Mexico

* The federal finance ministry (SHCP) has announced that it has successfully placed US$1.8bn in sovereign bonds in international markets. An SHCP statement said that the 30-year bonds were 4.3 times oversubscribed, the highest level of demand ever recorded for Mexican sovereign bonds. The issue is part of the SHCP’s debt-restructuring programme, and the funds raised by the operation will be used to pay in advance the US dollar-denominated bonds due to mature in January 2020, which represents 51% of Mexico’s foreign debt due to be paid by 2020. The new bonds offered a coupon rate of 4.60%, lower than the 5.12% coupon rate on the 2020 bonds. The SHCP’s debt-restructuring programme is part of the government’s efforts to reduce public debt as a percentage of GDP from the 50.1% recorded in 2016 to 48% this year.