Mexico Sets Record with Strong Demand for Recent Debt Bonds Despite Policy Criticisms

Mexico’s recent issuance of debt bonds in international markets has been described as the largest placement in the country’s recent history. Demand on Wall Street tripled the amount offered, despite criticism of President Andrés Manuel López Obrador’s protectionist policies in the energy sector and confrontations with major trading partners. The strong exchange rate, economic expansion, and nearshoring narrative have contributed to Mexico paying relatively low rates. The $7.5 billion in debt placed puts Mexico at the top among countries with a BBB rating, such as Italy, Peru, Cyprus, Hungary, and Indonesia. The country is experiencing a significant decrease in risk premium and favorable debt rates. The government has emphasized that debt levels are manageable, but critics are concerned about the significant deficit and increased borrowing to fund infrastructure projects and social spending. All eyes will be on next year’s budget, especially with an upcoming presidential election in June. Subscribe to the EL PAÍS México newsletter for more information on current events.