NADB Retaps Bonds

The North American Development Bank (NADB), a lender 50% owned by Mexico’s government, has emerged to retap its 2022 bonds for $180m. Starting on the back of some $100m in reverse inquiry, the supranational drew approximately $300m in orders and boosted the outstanding size of the bond to $430m. The 2.40% coupon note reopened at 101.363 to yield 2.245%, or UST+62bp, inside of UST+65bp initial price talk. The 2022 had been quoted at UST+60bp in the secondary, according to sources following the sale, indicating 2bp concession. In a separate transaction Monday, NADB also priced a $50m 18-year bond at par to yield 3.00%. BNP Paribas and Bank of America Merrill Lynch managed the reopening, while BNP handled the smaller transaction. The bonds are rated AAA/AA+. The San Antonio, Texas-based NADB was created by the United States and Mexico, under NAFTA, with the US government owning 50%.