Elektra Prices MXP2bn in Local Bonds

Grupo Elektra priced MXP2bn in 3-year bonds at 300bp over TIIE, in line with guidance, according to a banker on the deal. Demand for the Mexican financial and retail company’s bonds reached 2x oversubscription, he says. Investors included private banks, mutual funds, bank treasuries and some insurance companies. Investors say the pricing was attractive. “It is a well known name and the company is doing well,” says one Mexico City-based investor. The bonds are rated A on a national scale by Fitch. Proceeds will be used to pay upcoming maturities, for working capital and to fund expansion, the banker says. The market had originally expected 2 separate transactions, with MXP1bn 3-year bonds expected to be issued via Actinver and another MXP1bn in 3-year bonds via Inbursa. The lead banker declines to comment on why the change took place. Elektra issued MXP1bn 3-year bonds, also via Actinver, in November, priced at TIIE plus 300bp.