VW Leasing Raises MXP2bn

Mexico’s VW Leasing has issued MXP2bn in 3-year bonds at TIIE plus 40bp, pricing in line with guidance, according to a banker on the deal. The issue received MXP3.2bn in orders, according to another banker on the deal. Prior to the sale, a report from Scotia had expected pricing of 30bp-35bp, while some investors had expected as much as 60bp. “The company has a guarantee from Volkswagen, which is why the deal is AAA, but the leasing company itself does not have a very strong balance sheet,” says one investor. Mutual funds, bank treasuries and pension funds were the main types of investors, bankers say. VW leasing plans to use proceeds to finance its operating needs. BBVA Bancomer and Banamex managed the sale. The leasing company last came to the Mexican market in October 2010, when it issued MXP1.5bn in 4-year bonds, which priced at 60bp over TIIE.