Santander Sells MXP ABS

Santander’s Mexican unit has placed MXP1.2bn in 2022 structured bonds in the domestic market at a fixed rate of 12.12%. The notes are structured so that risk is tied to a 2022 government bond, with holders receiving a payout if the sovereign issue falls below a pre-determined amount. The bonds were placed with Mexican institutional investors, according to a banker familiar with the transaction. Proceeds go towards the bank’s working capital. Santander’s capital markets unit managed the issue, rated AAA on a national scale. Fellow Mexican bank BBVA Bancomer is preparing to sell up to MXP3bn in local floating-rate bonds this month, at a maturity of up to 2 years.