Mexican ECA Bancomext looks to dollar, euro bond markets

(Latin Finance, 28 November 2016, Mexico City) The Mexican export credit agency could raise up to $1bn in the cross-border bond markets next year, Bancomext CEO Alejandro Diaz tells LatinFinance. The Mexican ECA will likely target a cross-border issue between $500m and $800m, although going up to $1bn is not out of the question, he said. The ECA in August priced a $700m Basel III-compliant bond, which proved a "useful instrument" for Bancomext to mitigate its exposure to foreign currencies. The peso has slumped since Donald Trump won the US presidential election earlier this month, but Díaz de León said Bancomext had hedged its assets with its liability positions to correspond with any volatility, adding that the ECA's balance sheet was "fully hedged."