Molymet Shrinks Tequila Bond, Plans Retap

Chile’s Molymet has issued MXP1bn ($78.6m) in 2023 bonds in the Mexican domestic market, raising less than a planned MXP2.6bn. Nonetheless, the deal is the first 10-year maturity among so-called tequila bonds, or Mexican domestic-market bonds from a foreign borrower. A reopening of the bond to build up its liquidity is possible later this year, according to a person familiar with the transaction. The metals processor priced at 7.03%, or Mbonos +200bp, in line with Mbonos+200bp-area guidance. Demand reached 1.2x, driven by Afores and insurance companies. Proceeds are marked for general corporate purposes. Banamex and Banorte-Ixe led the sale, rated AA+/AA on a national scale. It was the fifth tequila bond for Molymet, which has operations in Mexico. The most recent prior transaction had been a MXP1.7bn 2017 done at TIIE+80bp. The deal brings the Mexican local market total to MXP17.20bn from four transactions this year, just shy of the MXP18.24bn from six deals in the corresponding period in 2012. A MXP4.5bn 2037 bond from the Monterrey-Saltillo toll road is expected tomorrow, and America Movil is heard ready to come this week with a retap of its 2022 global-local notes for up to MXP15bn.