Agricultural Fund Prices MXP Bond

Fondo Especial para Financiamentos Agropecuarios (FEFA) has sold a MXP3bn ($224m) domestic bond, representing its Mexican market debut. The largest trust under second-tier development bank Fideicomisos Instituidos en Relacion con la Agricultura (FIRA) priced the 3-year notes at TIIE+25bp, in line with TIIE+25bp-30bp guidance. FEFA saw 2.8x demand, coming from a diverse mix of investors, according to a source familiar with the sale. Proceeds are to fund operations. Established in 1954 by Mexico’s federal government, FIRA offers credit and guarantees among other services to livestock, fishing, forestry and agribusiness sectors in Mexico. Banamex, BBVA Bancomer and HSBC managed the AAA rated transaction.