Chilean Metal Processor Readies MXP Bond Debut

Molymet is preparing to sell MXP1.5bn in 2018 bonds September 2, marking what is understood to be the first sale of bonds in Mexico by a Chilean company. The metal processor plans to issue MXP1bn in peso-denominated fixed-rate notes and MXP490m in notes denominated in the UDI inflation-linked unit. Proceeds will repay a two export loans due September 10 – a $147m loan from Banco de Chile that pays 3.36% and a $46m loan from Scotia at 3.23%. The local bond issue is rated AA by S&P and AA+ by Fitch, both on a national scale. Banamex is leading the offer. Molymet operates a Molybdenum processing facility in Cumpas, Sonora.