Agricultural Fund Raises Tight Local Bond

Fondo Especial para Financiamentos Agropecuarios (FEFA) has sold a MXP3bn ($233m) bond in Mexico’s domestic market, according to sources familiar with the sale. The 2015 notes priced at TIIE+20bp, tight to TIIE+25bp expectations that were based on the issuer getting that level on a similar deal earlier this year. FEFA saw 3.5 x demand, coming from 93 accounts, according to a source familiar with the sale. Proceeds will be used to fund operations. Banamex, BBVA Bancomer and HSBC managed the transaction rated AAA on a national scale. FEFA is a trust operated by second-tier development bank Fideicomisos Instituidos en Relacion con la Agricultura (FIRA). 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.