Interacciones Asks Investors on Tenor, Price

Mexico’s Banco Interacciones is planning to ask the market to set both the tenor and price on an MXP1.5bn bond issue that should happen by early December, CEO Gerardo Salazar tells LatinFinance. The issuer is seeking a 13-36 month tenor, with pricing between TIIE flat and 85bp over TIIE, he adds. “It is going to be assigned depending on the demand,” says Salazar. “Tenor is more important,” he adds. It is targeting institutional and high net worth Mexican investors with the deal, from a senior debt program of up to MXP10bn. At the same time, Interacciones will sell MXP630m in 10-year subordinated debt at a minimum of 175bp over TIIE. Salazar says the deals will be issued no later than 4 weeks from November 8. HSBC is sole lead on the 2 deals, rated A1 (Moody’s) and A (Fitch), which were recently approved by the CNV. The issuer has meanwhile opted to wait until early 2011 to issue a covered bond. It is looking for Nafin to guarantee 10.00% of the issue to ensure a AAA rating on the 22.8-year final, 8.0-year average life, deal. An MXP3.5bn debut covered issue had been expected. It has a AA rating with current collateral. The issuer is planning a non-deal roadshow for the covered bond this year, targeting Afores. Salazar says possible leads on the transaction include Citi, BBVA and HSBC. Interacciones specializes in sub-national and public infrastructure financing in Mexico. It is also looking to issue $2bn equivalent of covered bonds in local and international markets, and $280m of subordinated debt in the next 4 years, according to Salazar. Proceeds will be invested in infrastructure projects.