Category: Economy & Policy

Mexico’s Banorte priced Friday MXP3.6bn in 10- and 20-year bonds. A MXP3bn 2018 peso tranche priced at 60bp over 28-day TIIE, and a MXP630m 2028 UDI-denominated tranche priced at 4.95%. Proceeds are being used to bolster the issuer’s capital base, according to the regulatory filing. Banorte’s DCM desk ran the books for the deal.

Mexico’s Banorte is expected to sell MXP3.6bn today in UDI and peso-denominated bonds. A MXP3bn 2018 peso tranche will price over 28-day TIIE, and a MXP630m 2028 UDI-denominated tranche will get a fixed rate. Both pieces have Aaa local ratings from Moody’s. Proceeds will “strengthen the issuer’s capital,” according to the regulatory filing. Banorte is running its own books.

Mexico’s BBVA Bancomer has priced MXP6bn in 2011 bonds at 18bp through 28-day TIIE. The transaction is a reopening of a MXP5bn issue it sold February 15. Proceeds strengthen the bank’s capital base. BBVA ran its own books.

Mexico’s state-run lender Instituto Fonacot has priced MXP2bn in 2011 consumer loan-backed bonds at 3bp over 28-day TIIE. Demand for the AAA deal was MXP5bn, according to a banker on it. A pool of loans made to Mexican workers to purchase consumer goods, such as appliances, backs the notes. The sale is the first from a MXP7.65bn 5-year shelf. Scotia was the lead.

Highlighting the difficulties facing issuers in the hostile Mexican market, homebuilder Geo priced MXP1bn in 2010 notes at 176bp over 28-day TIIE, while the only other deal out there failed to launch. Geo came well wide to 150bp-160bp guidance and according to a banker on the A minus deal, it was only marginally oversubscribed. The transaction was led by Banorte and Santander and proceeds will help repay short term debt, as well as a MXP300m issue coming due in March. The other A minus Mexico corporate, a MXP1bn 2013 floater from MM Cinemas via Santander, has been postponed until next week.

Volkswagen Leasing has priced MXP2bn in 2011 notes at 12bp over 28-day TIIE. The transaction was 1.86x oversubscribed, according to a banker on it. ING and BBVA led the AAA rated transaction that funds the expansion of VW’s lending capacity. Mexican homebuilder Geo meanwhile pushed back pricing of MXP2bn in 2010 floating-rate notes until today for “strategic reasons,” according to a banker on that deal. Banorte and Santander are managing the A minus transaction. Movie theater operator MM Cinemas is also set to price MXP1bn in floating 5-year notes today via Santander, also rated A minus.

BBVA Bancomer has cracked open the Mexican peso debt markets after a January lull, pricing MXP5bn in its own 2011 notes at TIIE minus 18bp. Total demand reached over MXP20.7bn, say bankers on the deal. Orders were mostly from mutual bunds and banks. Proceeds will go towards general capital purposes. BBVA ran its own books.

Mexico’s BBVA Bancomer plans to issue a 2011 senior secured bond of up to MXP5bn as soon as today. The TIIE-linked floating rate notes are rated Aa2/AAA and could provide a gauge of local debt appetite for 2008, following a lull in issuance. The issuer’s DCM desk will run the books.