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25 February 2003
A new financial instrument was recently introduced onto the Mexican securities market, the Certificado Bursátil a Corto Plazo.
The Certificado Bursátil a Corto Plazo is a short-term security which can be issued as a part of a programme by:
It is a debt instrument that can be either denominated in pesos, or indexed
to the currency exchange or investment units.
The maturity of the Certificado Bursátil programme is 12 months and
each Certificado Bursátil maturity can be up to 360 days. The interest
rate will be established at each issue, and will be calculated either at a discount (below its market value) or by return (fixed or variable). The guaranty
of the Certificado Bursátil will be determined by the issuer.
The Certificado Bursátil will operate in a similar way to commercial paper conduits
in the United States.
This new product will allow Mexican entities, such as companies and state and
municipal governments, to access financing with short-term liabilities.
For further information on this topic please contact Jose Antonio Chavez at Thacher Proffitt & Wood by telephone (+52 55 5257 2940) or by fax (+52 55 5257 2950) or by email (email@example.com). The Thacher Proffitt & Wood website can be accessed at www.tpwlaw.com.
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