Urbi Aims for Under 10%

Price talk on a new 2020 bond from Mexican homebuilder Urbi is in the 10% area, investors say. The Ba3/BB issuer is set to conclude today investor meetings pitching the $250m issue, with pricing as soon as tomorrow. Deutsche Bank and Santander are managing the sale. In a report assigning a BB rating, Fitch notes a strong market position in a fragmented industry, geographic diversification and a significant land reserve. On the downside, Urbi’s business depends a lot on government-related mortgage funding of low-income homes, and it has high working capital requirements.