Auto Lender Nears Domestic Bond

Mexico’s Volkswagen Bank is preparing to raise MXP1bn ($71m) in the domestic bond market on June 14. The 2016 bond would pay a spread to the TIIE rate. Proceeds are marked for the bank’s operating needs. Banamex and Ixe are managing the sale, rated AAA on a national scale. The bank sold MXP 1bn in 3-year domestic bonds in December, at TIIE+50bp.