Nafinsa to Syndicate Bonds Hacienda Style

Mexico’s Nafinsa development bank is planning to raise up to MXP5bn ($379m) in the domestic bond market, trying out for the first time a syndicated auction process used by Mexico’s federal government. The plan is to offer 3-year floating-rate bonds and 10-year fixed rated bonds, at MXP1bn-MXP4bn per tranche in a sale scheduled for Wednesday, according to offering documents. The notes are rated AAA on a national scale, and will help fund the bank’s operations. The transaction is to be done through a group of 20 banks. The sale is to be the first in a series of regular transactions, targeting MXP25bn during 4Q2013 and all of 2014. The goal, Nafinsa says, matches the government’s – achieving better pricing and liquid benchmarks. The Hacienda first used the syndicated format in 2010.