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Mexico,United States : IDB Invest launches its largest bond in Mexican capital markets
Publish Date : 19-Feb-2018
IDB Invest has issued a new MXN 1,500 million (USD $81 million equivalent) 3-year bond in the Mexican capital markets. This is IDB Invests 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 Moodys and Standard & Poors, respectively, carries a floating rate coupon of 9 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 6.4 MXN billion of orders from 23 institutional accounts, IDB Invests largest ever orderbook in the Mexican capital markets.
The bond will allow IDB Invest to finance its growing pipeline of operations in Mexico. Proceeds from the issuance will ultimately fund projects in the renewable energy, manufacturing and financial sectors. The bond is part of IDB Invests 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.
IDB Invest has done over $2 billion in business in the country in the last decade, financing private sector activities that contribute to the countrys 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.
