Bank of America (NYSE:BAC), Citigroup (NYSE:C), HSBC Holdings Plc NYSE:HBC), and ING Groep NV – Managing Sale of Mexico Peso Bonds

Bank of America (NYSE:BAC), Citigroup (NYSE:C), HSBC Holdings Plc, ING Groep NV have been hired by Mexico to manage its offering of peso bonds which will be linked to inflation. The bonds will mature in 30 years.

The bonds will be tied to inflation at a rate of 4 percentage points above what the current rate of inflation is at the time. The terms of the bonds weren’t revealed on the Web site of the Mexican Finance Ministry, neither were the size of the bond offering or the date they will be sold.

This is the second bond offering by Mexico this year where they’ve enlisted the help of investment banks to expand it to a larger group of investors in order to cut down on the costs of borrowing and increase the size of its trading debt.

In their first use of investment banks this year Mexico sold about $2 billion worth of 10-year bonds by a group of banks which had a yield of 7.66 percent. They’ve risen slightly since then to yield 7.72 percent.

On their Web site, the Mexican Finance Ministry said, “It is important for the new benchmark to have adequate secondary liquidity and a broad investor distribution at the time of issuance.”

The 10-year bond sale was offered by JPMorgan Chase (NYSE:JPM), Santander, Grupo Financiero BBVA Bancomer and Bank of America, who are also listed as co-managers on this bond offering too, along with the others listed above.