UMS Prices MXP25bn 5-Yr to Yield 6.13%

Mexico has raised MXP25bn through the syndicated sale of 6.00% coupon MBonos priced at 99.44 to yield 6.13%, which the issuer says is the lowest it has ever achieved on a 5-year locally. “The transaction saw demand of 2.2 times the amount offered, and was distributed among around 48 investors including institutional, local and foreign,” says the finance ministry. Afores took 28%, banks and brokerages 35%, investment funds 9% and foreign investors 13%, it adds. The remainder went to insurance companies, pension funds and public treasuries. The size was the high end of an expected MXP15bn-MXP25bn range. The deal was in the same format as a sale of MXP25bn in 10-year notes and MXP10bn in 30-year UDI-denominated bonds earlier this year. Mexico started offering bond in this way this year to ensure adequate liquidity immediately upon issue, facilitate entrance to global bond indices, and gain broader distribution. Banamex, BBVA Bancomer, ING and Santander managed the new sale, with Bank of America Merrill Lynch, Deutsche, HSBC and JPMorgan as co-managers.