VB Prices MXP Bond

Mexico’s Volkswagen Bank has raised MXP1bn ($72m) in the domestic bond market. The 2016 bond priced at TIIE+45bp, in line with TIIE+40bp-45bp price talk. Demand was 2.5x, with a investment funds, retail investors, banks and insurance companies participating, according to a source familiar with the transaction. Proceeds are marked for the bank’s operating needs. Banamex and Ixe managed the sale, rated AAA on a national scale. The bank sold MXP 1bn in 3-year domestic bonds in December, at TIIE+50bp.