HSBC Mexico Makes Rare DCM Visit

HSBC has issued MXP5bn ($381m) in fixed and floating-rate domestic bonds, according to people familiar with the terms. The Mexican arm of HSBC Holdings priced a MXP2.7bn 2023 bond at 8.08% or Mbonos+161bp, in line with 160bp area guidance. A MXP2.3bn 2018 bond priced at TIIE+30bp, in line with TIIE+30-35bp guidance. Total demand topped 2.1x, with Afores participating in the fixed-rate portion and treasuries, mutual funds, retail and other investor types participating in the FRN. Proceeds will help fund the bank’s portfolio. HSBC’s own capital markets arm managed the transaction, rated AAA on a national scale. The bank’s most recent previous domestic offering was a MXP4.18bn subordinated bond sale in June 2009.