Mexico issues samurai bonds for first time in two years

Mexico has returned to the samurai bond market for the first time in two years, raising 282.8 billion yen (approximately $1.77 billion). The issuance consisted of four tranches with maturities ranging from 3.5 to 20 years.

Borrowers are increasingly utilizing the Japanese market to secure financing before potential interest rate hikes in Japan. For investors, these bonds remain attractive due to spreads that are typically wider than comparable local debt.

The issuance occurs as Mexico faces pressure regarding its credit ratings. In May, S&P Global Ratings revised the country's outlook to negative, citing weak economic growth, rising debt levels, and persistent fiscal deficits. Similarly, Moody's Ratings lowered Mexico to the lowest investment grade level, noting that ongoing support for the state-owned oil company, Petróleos Mexicanos SA, limits the government's ability to manage national debt.