Banco Industrial Upsizes Bond

Guatemala’s Banco Industrial has raised $500m in the international bond market, upsizing from an expected $300m. Investors put in for $4.5bn in orders for what lead managers are calling the largest-ever non-sovereign bond from a privately-owned Central American issuer. Guatemala’s largest bank priced the Baa3/BB 2022 bond at par to yield 5.500%, tight to 5.500%-5.625% guidance that followed low 6.000% whispers. “We saw value in today’s Banco Industrial deal. It’s the top bank in Guatemala, has strong support from equity holders, improving credit metrics and upward momentum for the ratings,” says a participating EM portfolio manager. The bonds were trading up 0.50 in the grey, according to the investor. While difficult to comp to Industrial’s illiquid $150m 10-year subordinated Tier 2 bonds, leads say the deal offered investors at least 130bp pickup to the Guatemala sovereign. “This deal demonstrates investors’ search for diversification and yield in a fundamentally strong market. It is an issuer’s market,” adds a DCM banker away from the deal. Approximately 268 accounts participated in the deal, which follows a 3-day US, European and LatAm roadshow. Proceeds from the sale will be used to address Banco Industrial’s short-term debt and fund growth of its credit portfolio. Bank of America Merrill Lynch and Citi managed the transaction, issued by the Industrial Senior Trust entity with a guarantee from Banco Industrial.