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IDB issues US$81mn 3-year bond in Mexico

Bnamericas Published: Friday, February 16, 2018
IDB issues US$81mn 3-year bond in Mexico

IDB Invest, a member of the Inter-American Development Bank (IDB) Group, has issued a new 1.5bn peso (US$81mn) three-year bond in the Mexican capital markets. The bond will allow IDB Invest to finance its growing pipeline of operations in Mexico.

As noted in the announcement, this is IDB Invest's fourth and largest bond issuance in Mexico to date, as well as the first one since reorganizing its private sector operations as IDB Invest.

The issuance, which received the highest local ratings of Aaa.mx and mxAAA by Moody's and Standard & Poor's, respectively, carries a floating rate coupon of nine basis points above the TIIE 28 benchmark. It will mature on February 16, 2021.

HSBC and BBVA acted as joint-bookrunners on the deal. The transaction was 4.3 times oversubscribed, with more than 6.4bn pesos of orders from 23 institutional accounts, IDB Invest's largest ever orderbook in the Mexican capital markets.

"Proceeds from the issuance will ultimately fund projects in the renewable energy, manufacturing and financial sectors. The bond is part of IDB Invest's strategy of expanding local currency capabilities to provide more flexibility to its clients, and to lessen their currency refinancing risk. The issuance also responds to interest among Mexican investors to diversify their portfolios with high-quality assets," read the statement.

The announcement added that IDB Invest has done over US$2bn in business in the country in the last decade, financing private sector activities that contribute to the country's development in areas such as manufacturing, water and sanitation, small and medium enterprises (SMEs), energy and financial markets.

"As IDB Invest expands its operations in Mexico, its local office will grow to better serve clients and have a greater impact on development," read the statement.

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