Banco Industrial Sets Target

Guatemala’s Banco Industrial is aiming for a low 6.00%-area yield on a new $300m 2022 senior unsecured bond, according to people following the deal, expected to price as soon as today. The price talk is inside Industrial’s own $150m 10-year subordinated Tier 2 bonds, which were trading around 6.79% Wednesday. Investors expect the deal to offer an attractive pickup to the Guatemala sovereign (Ba1/BB/BB+), trading recently at 4.20%-4.30% levels. Baa3/BB Industrial ended a 3-day US, European and LatAm roadshow Wednesday. Proceeds from the sale will be used to address short-term debt and fund growth of its credit portfolio. Bank of America Merrill Lynch and Citi are managing. The bond will be issued by the Industrial Senior Trust entity and comes with a guarantee by Banco Industrial.