Agriculture Fund Preps MXP Bond

Fondo Especial para Financiamentos Agropecuarios (FEFA) plans to issue up to MXP3bn ($233m) in the Mexican domestic bond market October 2. The trust managed by development bank Fideicomisos Instituidos En Relacion Con La Agricultura (FIRA) plans to issue 3-year bonds paying a spread to the TIIE. Proceeds would 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 are managing the AAA rated transaction. In a May domestic market debut, FEFA sold MXP3bn in 3-year bonds at TIIE+25bp.