Category: Economy & Policy

Mexico’s Banorte sold Wednesday MXP2.75bn in subordinated 5-year notes, falling short of the MXP3.00bn it was hoping to raise. The self-underwritten deal was priced at 77bp over 28-day TIIE, slightly wider than the midpoint of the 40bp-90bp range, according to a banker on the deal. “The market has been a bit difficult lately,” he adds.

Mexican Retailer Organizacion Soriana has priced MXP5.5bn in 2012 bonds at 43bp over 28-day TIIE. The book reached MXP10.2bn, according to a banker on the AA deal, allowing for placement at the top of the MXP3.5bn-MXP5.5bn expected range. The deal serves as a test for large corporate offerings, of which there have been few this year, as well as for market access for AA names. Soriana will use proceeds to help pay down bridge debt used for the $1.35bn purchase of Grupo Gigante in December. The offering is the first from a MXP15bn shelf filed for this purpose, approximately two-thirds of which will be medium-term notes, with the remainder in CP. Soriana is heard eyeing a MXP4.5bn placement around September to fill out the MTN portion. Banamex, Inbursa and JPMorgan led.

Mexican lender Credito y Casa has placed MXP600m in 2012 bonds backed by a pool of mortgages, at TIIE plus 160bp, according to a regulatory filing. The AAA rated offering is supported by a package of more than 2,600 credits with an average maturity of 2 years. Barclays and Santander managed the sale.

Credi Nissan has priced MXP1.3bn in 2011 bonds at 24bp over 28-day TIIE. Demand for the mxAAA rated transaction reached almost MXP2bn, according to a banker on it. Proceeds enhance the issuer’s lending capabilities. Banamex and BBVA managed the sale.

Instituto Fonacot, Mexico’s state-run lender, has priced MXP1.95bn in 2010 floating-rate bonds at the 7bp over the 28-day TIIE. Demand for the AAA locally-rated sale reached MXP3.52bn. Proceeds will repay MXP1.4bn in maturing debt and increase the bank’s ability to provide credit to clients. Scotia managed the transaction.

Mexican brewer and bottler Femsa has sold MXP1.5bn in 2011 bonds at 2bp through 28-day TIIE. Guidance was TIIE flat to TIIE minus 5bp. The mxAAA rated transaction was 1.81x oversubscribed from 36 accounts, according to a banker managing the sale. The 2011 fills a point on the issuer’s yield curve and proceeds are for refinancing. HSBC managed the sale.

Elections in the Dominican Republic will have little impact on the financial and economic outlook of the country as current president Leonel Fernandez is expected to win, says Mauro Leos, analyst at Moody’s. Fernandez’s victory is already incorporated into most market prices, Leos adds. “It would be a surprise if he is not reelected,” the analyst adds. The new government will continue to deal with ongoing tight financial conditions as the DR feels the impact of high commodity prices and a decline in family remittances, which is an important income and foreign exchange revenue source for the country, Leos concludes.

CAF has sold MXP800m in 2010 bonds in the Mexican market with a coupon of 5bp over 28-day TIIE, the Caracas-based multilateral says. Institutional investors were among the main buyers. The issue is a follow up of a MXP750m November 2007 deal. HSBC was sole lead.

Mexican auto parts maker Nemak has reopened its 2014 floating rate peso bonds for MXP1bn at a spread of TIIE plus 48bp. The deal came exactly in line with price expectations, says a banker on the deal. In November, Nemak issued the bond at 45bp over TIIE. The extra three basis points are due to added market volatility seen in today’s environment, says the banker. HSBC managed the deal.

Mexico’s Nemak is expected re-open its 2014 floating-rate notes Wednesday, for an amount that remains to be set. The auto parts maker sold MXP2.5bn of the bonds at 46bp over 28-day TIIE in November, and could see a similarly sized placement this week. Nemak plans to use proceeds from the mxAA rated deal for general corporate purposes. HSBC is managing the sale. Separately, brewer and bottler Femsa completed a roadshow Friday supporting an issue of MXP1.5bn in 2011 bonds to be priced at a spread over 28-day TIIE. The short tenor is apparently a point the corporate wants to fill on the curve. The mxAAA rated sale is expected the week of May 19 and proceeds will refinance debt. HSBC is also managing the Femsa debt issue. The Mexican pipeline is holding steady, as retailer Soriana has also made an initial filing for an unspecified bond issue via Inbursa, JPMorgan and Banamex.