Banobras Prices MXP Bond

Mexico’s Banobras was able to upsize a multiple-tranche bond in the domestic market yesterday to MXP7bn ($513m) from MXP5bn and price inside expectations after generating some MXP19bn in demand. The development bank priced a MXP5bn 4-year floating rate bond flat to TIIE, a MXP500m 10-year UDI-denominated piece at Udibonos+50bp and a MXP1.5bn fixed-rate portion at Mbonos+70bp. Banobras was heard looking to pay TIIE 0bp-5bp on the 4-year floater, Mbonos+80bp on the 10-year, and Udibonos+60bp for the inflation-linked 10-year. Bank of America Merrill Lynch and Banamex managed the sale, rated Aaa on a national scale. Banobras last issued in the local market in 2010 via Banamex, when it sold MXP7bn in 4-year bonds after generating some MXP19bn in demand.