Thursday, 5 March 2009

NR Finance Plans Sale of 3.9 Billion Pesos of 18-Month Bonds in Mexico; Maturities Remain Constrained Due to Credit Crunch

NR Finance, the Mexican car financing unit for Nissan Corp. and Renault SA, plans to offer 3.9 billion Mexican pesos in bonds in domestic markets this week. The proceeds from the sale of the 18-month so-called certificados búrsatiles is to help repay maturing debt in May. Bondholders of the maturing debt will be goven the chance to replace their bonds with the new issuance; in case they refuse, they will be repaid fully by NR Finance. The situation for car loan companies is getting tougher as the credit crunch extends -- and credit conditions in Mexico continue to be challenging. Yet, the corporate debt market, as we have mentioned a few times here, is staging a steady recovery, especially the segment of commercial paper, which has experienced a good revival this year.

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