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Mexico says investors back airport bond buyback

Thursday, December 20, 2018

Almost three-quarters of bond investors in the Mexico City airport project that is destined to be scrapped tendered their paper in a buyback designed to avoid a messy default.

But the overwhelming success of the offer does not mean that President Andrés Manuel López Obrador has seduced investors permanently, analysts told the Financial Times

Mexico had issued $6 billion in bonds to help pay for a $13 billion Norman Foster-designed airport in Mexico City that is already one-third constructed.

But López Obrador’s decision to kill the project following an informal people’s poll in October, held even before he took office, stunned the market.