Penoles Postpones Debut; DF Proceeds

Mexican silver miner Penoles has decided to down tools on a debut bond issue in the domestic market, according to bankers on the trade. Penoles had been set to price today up to MXP7bn in eagerly awaited local bonds. The issuer is heard failing to find an acceptable FX derivative structure to swap the issue back into dollars, its main earning currency. It will consider FX-indexed MXP, or perhaps USD, issuance at a later date, according to investors. The silver miner was to sell its first-ever domestic bonds using a structure giving it the option to split into 10-year fixed-rate notes and 5-year floaters basis TIIE. BBVA Bancomer, HSBC and Santander had been managing the sale, rated AA+ on a national scale. The issuer had been seeking funds for debt refinancing and funding investment. Still on for today, however, is a MXP2bn ABS from the Mexico City government. The securitization of tax revenues from the federal government is seen paying around TIIE plus 40bp on a 2015 and Mbonos plus 100bp for a 2020 fixed-rate tranche.