Daimler Prices MXP Bonds

Daimler Mexico has issued MXP500m in 3-year bonds, after receiving 1.4x demand, says a banker on the deal. The bonds priced at TIIE plus 34bp, tight to guidance of 35bp, he adds. The transaction came tight to last week’s issuance by Mexico’s Volkswagen Leasing, which sold MXP2bn in 3-year bonds at TIIE plus 40bp. An investor says that the smaller size of the issuance and the fact that it was done at the holding company level were the main reasons for the tighter spread. The bonds were bought by investment funds, private banks and some pension funds. The issuance had been pushed back a week because of a delay in the documentation process, adds the banker. The proceeds will be used for general corporate purposes. Santander managed the sale, rated AAA on a national scale. Daimler last came to market in November last year, when it issued MXP750m in 2-year bonds.