Gas Natural Bond to Price Today

Gas Natural Mexico is today expected to price up to MXP4.5bn in a dual tranche deal, according to market participants. Guidance for a 4-year floating rate tranche is for TIIE+ 40bp-50bp, according to a report by Scotia Capital, while a 7-year fixed rate tranche is Mbonos+ 140bp+150bp. Mexican bond investors looking to diversify their exposure within the energy sector have expressed significant interest in the transaction from the subsidiary of Spain’s Gas Natural as a way to diversify their holdings. Proceeds will be used primarily for debt refinancing purposes. Banamex, BBVA Bancomer, HSBC, ING and Santander are managing the deal, rated AAA on a national scale.