FEFA Closes in on Domestic Bond

Fondo Especial para Financiamentos Agropecuarios (FEFA) is looking at the third week of February to sell floating-rate bonds in Mexico’s domestic market, according to people familiar with the company’s plans. The agriculture lender is targeting a 2016 bond which will represent its third domestic issuance. FEFA has filed to issue up to MXP6bn ($472m), with expectations that the deal will be around MXP5bn. Proceeds will be used to fund FEFA’s operations. BBVA Bancomer, Banamex and HSBC are managing the deal, rated AAA on a national scale. FEFA is a trust operated by development bank Fideicomisos Instituidos en Relacion con la Agricultura (FIRA). Established in 1954 by Mexico’s federal government, FIRA offers credit and guarantees and other services to the livestock, fishing, forestry and agribusiness sectors in Mexico. In its previous transaction, it sold MXP3bn in 2015 bonds at TIIE+20bp in October last year.