Banks Add to Mexican DCM Momentum

While the cross-border bond markets remained dormant this week, the Mexican local market is wide open, at least for plain vanilla sales, with Inbursa raising MXP6bn ($466m) and government development bank Bancomext pricing a MXP2bn sale. The market for securitizations, however, was a bit more questionable – a third deal of up to MXP3.5bn from bus operator IAMSA still waited to cross the finish line late Wednesday. Carlos Slim-owned Inbursa priced its floating-rate 2016 at TIIE+25bp, flat to 25bp guidance. Proceeds will be used to maintain and improve the liquidity profile of the bank’s balance sheet and meet its operational requirements. BBVA Bancomer, Banamex, Banorte-Ixe, Bank of America Merrill Lynch and Inbursa managed the sale, rated AAA on a national scale. Inbursa previously raised domestic funds in November, through a MXP8.05bn sale. Meanwhile, Bancomext has clinched a MXP2bn 2023 bond with what is called the lowest-ever domestic coupon for a government development bank. The sale came at 5.61%, or Mbonos+50bp, in line with 50bp guidance. The deal was 2.3x subscribed, with Afores driving the bulk of demand. Proceeds will be used to fund the development bank’s lending portfolio. BBVA Bancomer, Banamex and HSBC managed the deal, rated AAA on a national scale. The deal was the bank’s first since November, when it printed a MXP2bn 10-year bond at a fixed rate of 5.94%, or Mbonos+50bp. Fellow government lender Banobras priced a MXP3bn 2023 bond at 5.64%, or MBonos+50bp, in January. The fate of IAMSA’s 15-year bond backed by bus revenues remained to be decided Wednesday night. Santander is managing the sale, which was to follow a MXP4.2bn 2038 toll road securitization priced by the Monterrey-Saltillo concession Monday, at a wider than intended level with books barely covered. Both transactions had been put off last year to await better conditions. A 30-year road securitization by IDEAL and a 22-year MXP1.8bn hospital service contract-backed sale from Desarollo y O