Banobras Weighs Fundraising, In No Hurry

Infrequent quasi-sovereign Mexican issuer Banobras may be looking to tap capital markets as demand for its loans rises. “Eventually we would have to. The bank under these circumstances – according to the demand and financial program we have – will need to access the markets eventually for funding,” Alonso Garcia Tames, director of infrastructure development bank Banobras, tells LatinFinance. He adds that tenor, size and whether a deal would be local or international have not yet been determined. Banobras was last in the local market in November 2005 with a MXP2bn 5-year priced at par to yield 8.68%. It has not been in the international market since 1996. In general, Banobras is drawing much more demand from local borrowers seeking alternatives to choppy and cautious peso capital markets. “We are again being much more looked to. Many people are only finding funding through the development banks,” says Garcia. Banobras also expects more demand for its new guarantee product, following the success of last year’s MXP27bn refinance for State of Mexico.