HSBC issues bonds in Mexico

HSBC issues bonds in Mexico

Bonds Debt Capital Markets Fixed Income Mexico Europe Coronavirus

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HSBC said it raised MXN7 billion ($312 million) from a two-part bond sale in Mexico, the first such deal by an international bank in the local market since the start of the coronavirus outbreak.

HSBC sold MXN1 billion in three-year notes at 50 basis points over the TIIE interbank lending rate and also placed MXN6 billion in 10-year notes at a fixed rate of 7.85% per year. Demand for the 2023 notes reached 3.18 times the amount on offer, while orders for the 2030s were 1.87 times the supply, the bank said in a press release on Friday.

The bank added that it will use the proceeds for general corporate purposes.

Moody's gave the new notes a rating of Aaa.mx on the local scale, while Fitch Ratings assigned them a AAA (Mex), according to HSBC.

The British bank named Jorge Arce as its new CEO in Mexico in January as Nuno Matos moved up to become CEO of HSBC Bank and head of the bank in Europe.