NR Finance Prices Floater

Mexico’s NR Finance priced MXP2.5bn ($215m) in 3-year floating rate bonds in the domestic market, coming at TIIE+50bp, or 5bp tight to guidance after generating MXN3bn plus in demand. Pension and mutual funds were the principal buyers. The Nissan leasing subsidiary was expected to price last month but halted plans to issue after regulators required more time to enquire about guarantees from the parent. With regulations becoming more stringent across Latin America, greater transparency is being sought from issuers in an effort to protect and encourage pension fund participation in bond issues, bankers say. NR Finance plans to use the funds for working capital. HSBC and Scotia managed the sale, rated AAA from Fitch on a local scale. The borrower last came to market in November 2010, when it issued MXP2.8bn in 3-year bonds, priced at 65bp over TIIE.