September 4, 2019 |
Mexican baker raises $600m to refinance some 2020 notes and extend its yield curve
Mexico's Grupo Bimbo has raised $600m from the sale of new 30-year notes in the international bond market, tightening the spread by 25bp on strong demand.
The bookrunners BBVA, Citi, ING, JPMorgan, Morgan Stanley and MUFG set the initial price talk at 240bp over US Treasury bonds, but they issued the notes at 215bp, said a bonds banker not on the deal.
Bimbo's new benchmark-sized bond priced with a 4% coupon to yield 4.097%, the banker said.
S&P Global gave the notes a BBB rating, saying Bimbo planned to raise at least $500m to refinance some of the $800m in 4.875% notes due in June next year and to extend its yield curve.
"Bimbo is a great consumer name with a lot of US sales, which are growing faster than in Mexico," the banker said, adding that foreign investors saw the bonds as a counterbalance to Mexico's slowing economic growth.