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Mexico Returns to Japan with US$1.78 Billion Samurai Bond Issuance

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Mexico has returned to Japan's capital markets after a two-year hiatus by issuing a four-tranche Samurai bond for US$1.78 billion, the Ministry of Finance and Public Credit announced on August 28.

The issuance aims to diversify public credit sources away from traditional western markets and fund general budget requirements as well as sustainable development projects under the 2026 federal budget.

Japanese institutional investors are expected to absorb a substantial share of Mexico's Asian debt sales, with regional banks, credit cooperatives, life insurance companies, and specialized investment funds among those participating in the deal.

The transaction also allows Mexico to access specialized Asian institutional investors while navigating shifting Bank of Japan interest rates and foreign exchange hedging requirements.

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