Bancomer Readies MXP Tier 2 Bonds

Mexico’s BBVA Bancomer plans to sell up to MXP5bn in 2018 subordinated bonds as soon as Thursday, according to regulatory documents. The bonds are rated AAA on a national scale and will pay interest over 28-day TIIE. Proceeds will be used to strengthen the Tier 2 capital base. BBVA has has placed almost MXP20bn of its own bonds RMBS this year, making it the largest issuer in Mexico’s domestic market, according to Dealogic. This will be its first MXP Tier-2 issue this year. BBVA’s own capital markets unit will lead the transaction.