Ixe Preps Hybrid Bond

Mexico’s Ixe is preparing to issue $120m in 10-year junior subordinated bonds, according to Fitch, which assigns a B+ rating. Goldman Sachs is heard managing the new bond sale, of which the timing is unclear. The bank’s only previous dollar bond, according to Dealogic, was a $120m 9.75% perpetual bond in 2007, managed by Goldman. “Ixe has adequately faced the tough recent operating environment by maintaining good asset quality, sound capital levels and ample liquidity despite continued growth in overall business volume,” Fitch says, noting also relatively limited loss absorption capacity, high borrower and risk concentrations and challenges associated to rapid loan growth and business diversification. Ixe and larger Mexican bank Banorte have been the subject of rumors this week regarding a merger or sale to Banorte.