HSBC Mexico to Issue Rare Local Bond

HSBC Mexico plans to issue up to MXP5bn ($379m) in the domestic bond market, according to people familiar with the deal, what would be the bank’s first domestic deal in four years. The Mexican arm of HSBC Holdings is selling 5-year floating-rate bonds and 10-year fixed-rate bonds, with pricing tentatively scheduled for December. Proceeds would help fund the bank’s portfolio. HSBC’s own capital markets arm is managing the transaction, rated AAA on a national scale. Its last domestic offering was a MXP4.180bn subordinated bond sale in June 2009.