Bancomer Taps Tier 2

BBVA Bancomer emerged Monday to add $500m to its 2022 Tier 2 bond. With demand reaching $1.5bn from approximately 105 accounts, the Mexican bank reopened the 6.75% coupon bonds at 109.89 to yield 5.45% or UST+373bp, tight to 5.50% guidance. The A3/BBB sale offered investors 12bp-13bps concession, bankers on the deal say. Proceeds will be used to strengthen the bank’s capital structure and for general corporate purposes. BBVA, Bank of America Merrill Lynch and Goldman Sachs managed the transaction. Bancomer sold the original $1bn in 2022 subordinated Tier 2 bonds in a July transaction.