Tough conditions in local and international bond markets have pushed two Mexican borrowers – Fibra Uno and Soriana – to issue less than they had targeted in bond sales this week.
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Fibra Uno downsized a 5.25% January 2026 issue to $300m on Monday, after investors were heard to put in weak demand for the paper. The real estate trust had eyed a $500m deal. Although order books rose to more than that, the demand was not seen as sufficient to allocate the full amount, LatinFinance heard.
Soriana, meanwhile, dropped a planned 10-year tranche and issued just a MXN7bn ($423.5m) five-year bond on Tuesday. It had been targeting a MXN10bn transaction size.
The moves reflected a particularly difficult market, sources following the transactions say. While December is normally a slow period, speculation of interest rate rises by the US Federal Reserve and Mexico’s central bank have also hampered investors’ appetite for bonds.
Added to turmoil and uncertainty in Brazil and low commodity prices, market sources say new bond sales will remain thin for the rest of the year.
“The majority the investors in the market are sellers, and a lot of these guys are starting to think, ‘it’s time to start wrapping it towards the end of the year’. I don’t think we will see any big deals come to the market before Q1 of next year.”
FUNO met bond investors in the US in September, at the same time as Fibra Terrafina went on the road. Terrafina sold a 5.25% $425m 2022 note in November. Fibra Uno’s vice-president of capital markets said recently that the borrower would concentrate on short-dated local currency funding.