IDB Invest, the private sector institution of the IDB Group, priced a new three-year bond for 2 billion Mexican pesos (equivalent to USD 94.5 million) in the Mexican capital markets. This is IDB Invest’s largest bond issuance in Mexico to date and its sixth one in that market.
The issuance received the highest local ratings of mxAAA by S&P Global Ratings and AAA.mx by Moody’s, respectively, and carries a floating rate coupon of TIIE 28 plus seven basis points. BBVA and Banco Santander acted as joint-bookrunners on the deal. The transaction was 2.1 times oversubscribed, with 4.2 billion of orders in Mexican pesos from 19 institutional investors. The strong demand allowed the bookrunners to lower the coupon during the book building from the initial price guidance of 10-15 basis points to 7 basis points over TIIE 28. Pension funds gathered 47% of the bonds issued, while 27% went to asset managers and 26% to brokers and bank treasuries. The successful result reflects the strong appetite from local investors for high quality assets and the recognized status of IDB Invest as a top credit quality issuer committed to the economic development of Latin America and the Caribbean.
The proceeds of the bond will contribute to funding IDB Invest’s corporate response to the COVID-19 pandemic in Mexico, providing much needed financing to Mexican companies in local currency. With this bond, IDB Invest also supports local capital markets, offering local investors a high-quality investment opportunity with a clear-cut development impact.
Since 2008, IDB Invest has approved 118 transactions for more than USD 3 billion in business in Mexico across multiple sectors including infrastructure, agribusiness, and financial intermediaries.
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of USD 13.1 billion in asset management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.