Penoles Mines at Home for USD

Mexican miner Penoles has sold $530m in dollar-denominated bonds in Mexico’s domestic market. A $400m 10-year tranche priced at fixed rate of 5.15%, and a $130m 2015 tranche priced at Libor plus 178bp, according to bankers on the deal, who decline to comment on the demand. BBVA, HSBC and Santander managed the sale, rated Aa1 on a national scale, which will fund investments and refinance debt. Penoles, owned by Grupo Bal, is said to have issued in USD as it is looking for liabilities that match cashflows. The company had pulled an issue of up to MXP7bn in June because it failed to find an acceptable FX derivative structure to swap the issue back into dollars. There was expected to be great interest for a deal in either currency, as Penoles is considered an infrequent issuer. Bankers say it is the second USD-denominated domestic deal, following an HSBC subordinated bond last year.