Engenium Capital raises MXN 2,500 million in 5-year bonds

Original Source: Sentido Económico

March 22, 2018

Engenium Capital, a specialty loan and leasing company, accomplished its goal of raising 2,500 million Mexican pesos (135.20 million US dollars) through the issuance of two five-year bonds, each one backed by collection rights to a bundle of leasing and loan contracts between the company and its clients.

The first bond, which will trade under ticker ENCAPCB18 and which matures in March 2023, raised a total of 2,100 million Mexican pesos (113.57 million US dollars). This instrument will pay an interest rate of 10.04% in its first interest period. Accrued interest will be paid on the 25th of each month, according to the placement notice filed in the Mexican Exchange website.

With the second bond, which will trade under ticker ENCAPCB18-2 and which also matures in March 2023, the lessor obtained 400 million Mexican pesos (21.63 million US dollars). This bond will offer in its first interest period a rate of 10.27% and interest will also be paid on the 25th of each month.

These first two issuances are part of a plan under which the lessor may obtain up to 10,000 million Mexican pesos (540.83 million US dollars) with the issuance of long-term debt in two tranches, variable and fixed.

These debt instruments received a rating of “HR AAA” from HR Ratings, while Fitch Mexico assigned the rating “AAAmex”. S&P Global Ratings awarded the rating of “mx AAA” and DBRS Ratings Mexico rated them as “AAA MX”. All the ratings issued by the agencies correspond to the top rating in the national investment scale.

For this transaction, Acciones y Valores Citibanamex or Accival, Casa de Bolsa Santander and Scotia Inverlat Casa de Bolsa acted as placement agents, the latter two also acting as structuring agents.