Santander Adds to MXP 3-Yr Supply

Santander Friday priced MXP5bn in 3-year bonds, with a spread of TIIE plus 20bp, according to lead bankers. Investors had expected the bonds to price in the 25bp over TIIE area. The order book received MXP7.5bn in demand, add the leads. The deal was self-led, joint with Banamex. Bank treasuries, investment funds and private banks were the main participants in the deal. The proceeds will be used to expand the bank’s lending portfolio. The bonds are rated AAA on a national scale. The day before, BBVA Bancomer issued MXP5bn in 3-year bonds, in the first bond issue by a bank in the local Mexican market this year. The bonds priced at 20bp over TIIE, the tight end of 20bp-25bp guidance. The book was MXP6.3bn on the AAA rated self-led deal.