VW Price Talk Heard

Mexico’s Volkswagen Bank is heard looking to pay TIIE+ 40bp on up to MXP1bn ($74m) floating rate bond in the domestic market. The 3-year notes are expected to be issued at the end of November or in early December, market conditions permitting, and will be guaranteed by parent Volkswagen Financial Services. The sale is the issuer’s first from a new MXP7bn program. Proceeds are earmarked for funding operations. HSBC and Santander are managing the transaction, rated AAA on a national scale.