Mexichem Readies Local Foray

Mexichem is preparing an up to MXP5bn ($394.3m) domestic bond issue, expected as soon as the end of February, say sources familiar with the deal. The petrochemicals producer plans to sell new 10-year fixed rate bonds, in addition to reopening its 2016 floating rate bonds which pay TIIE+60bp. The 2016s were originally sold in September for MXP2.5bn. The issuer is raising funds to refinance debt. A roadshow schedule has not yet been set for the issue, to be led by BBVA, Banamex and HSBC. Mexichem has an AA national scale rating.