IDB Invest issues its fifth bond in Mexican capital markets to finance projects in Mexico
IDB Invest, a member of the Inter-American Development Bank (IDB) Group, priced a new 3-year bond for 1.5 billion Mexican pesos (equivalent to $76.2 million) in the Mexican capital markets. This is IDB Invest’s fifth bond issuance in Mexico to date.
The issuance, which maturates on September 2022, received the highest local ratings of mxAAA by Standards & Poor’s and AAAmx by Fitch, respectively, carries a floating rate coupon three basis point below the TIIE 28 benchmark. HSBC and Banco Santander acted as joint-bookrunners on the deal. The transaction was 2.9 times oversubscribed, with more than 4.2 billion of orders in Mexican pesos from 26 institutional accounts. The successful results reflect the strong appetitive from local investors and recognized IDB Invest as a top credit quality issuer.
The proceeds of the bond will allow IDB Invest to fund its projects in Mexico and it is part of the institutional strategy to provide more flexible and innovative products in local currency and support local capital markets. Since 1986, IDB Invest has approved 116 transactions for more than $2.7 billion in business in Mexico across multiple sectors including infrastructure, agribusiness, and financial intermediaries.
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects so they can achieve financial results and maximize the region’s economic, social, and environmental development. With a portfolio of $12.4 billion in assets under administration and 342 clients in 24 countries, IDB Invest provides innovative financial solutions, knowledge and advisory services in response to its clients’ needs in a variety of sectors.