Mexico Syndicated MBono Due Next Week

Mexico is preparing to sell 5-year bonds through a syndicated bond placement, the third from the sovereign to date. The size and date have not been set, but a ministry official says it is planned for “early next week,” at a size of MXP15bn-MXP25bn. The government will offer the 6% coupon MBonos in the same format as the sale of MXP25bn in 10-year notes and MXP10bn in 30-year Udi-denominated bonds earlier this year. It started offering bond in this way this year to ensure an adequate size of new securities immediately upon issue, facilitate entrance on global bond indices, and get a broader distribution. Banamex, BBVA Bancomer, ING and Santander are managing the new sale, with Bank of America Merrill Lynch, Deutsche Bank, HSBC and JPMorgan as co-managers.