Banca Mifel Targets 10%

Banca Mifel is set to price a $150m-$200m Tier 2 subordinated 10-year bond as soon as today, after giving 10%-area guidance. The Mexican commercial bank is scheduled to wrap up a 3-continent roadshow today in Los Angeles. Mifel is raising funds to repurchase its outstanding $100m 11% perpetual bonds, callable in July. The remainder of proceeds will be used for general corporate purposes. The proposed notes will likely receive a 50% equity credit during the first 5 years outstanding, says Fitch which assigns a B rating to the new bonds, below the default BB minus mark. Credit Suisse is sole lead. The perpetual bonds represented Mifel’s last international sale, raising $150m in 2007. Deutsche Bank led that transaction with Credit Suisse as co-manager.