Caterpillar Digs for MXP Debt

Mexico’s Caterpillar Credito has issued its second domestic bond under a MXP5bn program, raising MXP1bn ($77m). The financing arm for Mexico’s Caterpillar subsidiary priced the 2016 at TIIE+40bp, in line with TIIE+35bp-40bp price thoughts, and inside of TIIE+43bp secondary trading levels of its 2016 bond sold last year. Demand reached 1.8x, with participation from a diversified mix of investors including mutual funds, insurance companies, and private banking, according to people following the sale. The bonds, guaranteed by Caterpillar Financial Services, have a 2.5-year average life. Proceeds will be used for general corporate purposes. HSBC managed the deal, rated AAA on a national scale.