Mexico’s Collado Slashes Bond Size

Market conditions continue to challenge Mexican debt issuers, as Grupo Collado managed to place just MXP400m of an issue originally set for MXP1.2bn. The steel processor priced MXP200m in 2011 bonds last week at TIIE plus 290bp, and MXP211m in 2010 bonds at TIIE plus 195bp. Collado scrapped altogether a third tranche with a tenor of up to 5 years. It is heard aiming to still sell a third tranche, as the offering was intended to repay some MXP700m in expensive debt maturing this year. Ixe managed the transaction, rated A minus on a national scale.