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 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 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 Invest’s 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 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.
IDB Invest has done over $2 billion 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.
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting the private sector in Latin America and the Caribbean. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.2 billion under management and 330 clients in 23 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation. www.idbinvest.org
- Ana Lucia Escudero