Fonacot Lands 3-Year Paper

Instituto del Fondo Nacional para el Consumo de los Trabajadores (Fonacot), issued MXP2.5bn in 3-year bonds Wednesday, tight to guidance. The deal was 1.6x oversubscribed, and priced at 39bp over TIIE, according to a banker on the deal, tight to guidance of 40bp-45bp over TIIE. Private banks, insurance companies, mutual funds and bank treasuries participated in the deal. Proceeds will be used to expand Fonacot’s consumer loan portfolio. The bonds are rated AAA on a national scale. Bancomer and Scotia were bookrunners.