Interacciones Plans Covered Bond Spree

Mexico’s Grupo Interraciones, which specializes in sub-national and public infrastructure financing in Mexico, is looking to issue $2bn equivalent of covered bonds in local and international markets, and $280m of subordinated debt in the next 4 years, Gerardo Salazar, CEO of the bank tells LatinFinance. Banco Interacciones is looking to do 3 bond issues a year over this period. The bank is looking to issue the first covered bond before the end of 2010 for MXP3.5bn. It is eyeing maturities of 10-15 years. The deal will be the first covered bond to be issued in Mexico, says Salazar. International markets the bank would look at for further bond issuances are the UK and US. “Mexico is offering attractive yields, long term investments and has stable financial markets,” says Salazar. “We expect to be able to attract institutional investors, including insurance companies, local and international pension funds and mutual funds to our bond issues,” he adds. Salazar says 85% of Interacciones’ assets are in government debt. Nacional Financiera is structuring the deal.