Interacciones Bond Pricing Widening

Price expectations on Mexico’s Banco Interacciones have widened to 130bp-150bp over TIIE, for its MXP1.5bn 3-year unsecured bond, according to the bank. Interacciones CEO, Gerardo Salazar, had previously told LatinFinance it would look for a spread of flat to 85bp over TIIE on a 13-36 month bond. The bonds are rated A1 on a national scale. Interacciones is targeting institutional and high net worth Mexican investors with the deal, from a senior debt program of up to MXP10bn. Interacciones expects to price the bond November 30. Interacciones and HSBC are joint leads on the deal. The bonds will be used to finance the expansion of its credit portfolio. It will also issue MXP650m in 10-year subordinated debt before December 15, in a self-led deal, adds the bank. The price guidance is in the 200bp over TIIE area. Salazar had previously told LatinFinance that Interacciones would pay a minimum of 175bp over TIIE. Proceeds from the bond sale will fund tier 2 capital to strengthen its capital base. Grupo Interacciones specializes in sub-national and public infrastructure financing in Mexico.