10 June 1999: Mexican glassmaker Vitro SA has launched a peso inflation-adjusted seven-year promissory note denominated in “UDIs”, an inflation-adjusted denomination of the peso.
In a recent company …
10 June 1999: Mexican glassmaker Vitro SA has launched a peso inflation-adjusted seven-year promissory note denominated in “UDIs”, an inflation-adjusted denomination of the peso. In a recent company statement, Vitro said it offered two million notes with a face value of 100 UDIs each, and expected to place them at a rate of Pso 2.543385 per UDIs. The total value of the offering is roughly equal to about US$ 53 million. Vitro said the notes would pay an annual real interest rate of 9% to remain fixed while the offering lasts. The offering is part of Vitro“s plan to turn Pso 1.8 billion of peso-denominated debt into UDI-denominated debt to improve the company“s debt profile. As of 31 March Vitro – one of Mexico“s biggest companies – had a total debt of US$ 1.622 billion, 78% of which was dollar-denominated with the rest being in pesos, according to its last quarterly results report.