DF Brings MXP1.77bn 5-Year

Mexico City’s government has raised MXP1.77bn ($128m) through a sale of a domestic bond. The 5-year floating rate notes priced at TIIE+30bp, flat to talk and tight to quasi-sovereign CFE’s MXP1.358bn 4-year notes that came last week at TIIE+35bp. Deutsche Bank managed the sale, rated AAA on a national scale. This bond represents the sixth issuance under Mexico City mayor Marcelo Ebrard’s administration. Demand topped MXP2.5bn with participation coming from mutual funds, private banking, Afores, banks, and insurance companies. Proceeds will help fund public works. It last raised MXP2bn through a 2.1x oversubscribed dual-tranche re-opening in 2010. The MXP500m floating rate tranche paid TIIE flat, while the fixed-rate tranche for MXP1.5bn paid Mbonos+105bp The bonds have maturities of 4 years 8 months and 9 years 8 months, respectively.