September 1, 2017 |
The Mexican development bank finds enough appetite for a $559m dual-tranche trade in the local capital markets
Banobras rode a huge order book to print MXN10bn ($558.9m) in fixed- and floating-rate notes (FRNs) on Thursday, marking the second sustainable bond out of Mexico this year.
The development bank raised MXN4bn in seven-year fixed paper at 49bp over the 6.78% 2024 Mbono, one DCM banker said. The FRNs tightened considerably throughout Thursday’s trading, enabling Banobras to net MXN6bn in 2020s at -3bp over the 28-day TIIE rate.
Mexican pension funds, or afores, subscribed to the lion’s share of the bonds, while financial institutions also participated in the deal, a second banker said.
Both Moody’s and Fitch Ratings rated the bonds AAA on a local scale, and the former said in a report that Banobras would use proceeds to invest in green and social projects.
Banorte-IXE, HSBC and Santander coordinated the bond sale, while HSBC also served as the sustainability agent.
In July, the same trio of banks, along with GBM, placed a MXN2bn bond for Mexican water facilities provider Rotoplas. The company got MXN1.4bn in 2027s at a fixed-rate of 8.65% to yield 189bp over Mbono, LatinFinance reported at the time.
Rotoplas also got MXN600m in 2020s at 68bp over the floating TIIE.
Fellow development bank Nafin has also tapped the local green market in the past, selling MXN2bn in September 2016.