Mexico Hires Bank of America, Citibank and Others to manage Sale of Peso Bonds (BAC, C)

Mexico has hired Bank of America Corp (NYSE: BAC), HSBC Holdings (NYSE: HBC), ING Groep NV (NYSE: ING) and Citibank’s (NYSE: C) Banamex unit to manage the sale of new 30-year inflation-linked peso bonds in its local market.

The Mexican government will sell the new bonds at 4% above the current rate of inflation, according to Mexico’s Finance Ministry in a statement on its website. No date has been set for the sale and the Finance Ministry has also not stated the total amount of bonds that will be sold.

The new offering of bonds is the second local sale that Mexico is doing via investment banks in 2010. Mexico is pushing to reach more investors, in hopes of boosting the trading of its debt and lowering borrowing costs.

During the month of February, Mexico sold 25 billion pesos or about 42 billion worth of 10-year bonds through syndicate banks which yielded 7.66%. The bonds now yield 7.72% today according to Banco Santander.

“It is important for the new benchmark to have adequate secondary liquidity and a broad investor distribution at the time of issuance,” said the ministry said on its website.

Subsequence sales of securities will be managed trough the country’s central bank, as have its previous issues, according to Deputy Finance Minister Alejandro Werner during an interview in February.