PACCAR Financial México successfully completes its offering of MXN 2 billion in notes

PACCAR Financial México successfully completed a placement of notes on the local debt market for MXN 2 billion. This marks the company’s return to the market after its last deal in 2017.

The transaction consisted of a variable-rate note with a legal term of 3 years and a half-life of 2.75 years, placed at 73 basis points (bp) over the TIIE. The credit ratings assigned by Fitch México and S&P Ratings were AAA(mex) and mxAAA, respectively.

In a complicated market climate for non-bank financials (NBFs), and particularly for automotive finance firms, the transaction set a precedent as the first issuance of this type in 2023.

The deal was very well received on the local market, with demand totaling MXN3.12 billion, 1.56 times the issued amount of MXN2 billion.  The notes were placed across a wide range of investors, especially insurance firms, investment funds and brokerage houses.

PACCAR Financial México is Mexico’s oldest automotive cargo transport finance firm, with more than 50 years of experience. In the past ten years, it has financed 38,333 Kenworth-brand vehicles, and 43% of the vehicles sold by Kenworth have been financed by PACCAR.  It has 19 regional offices in Mexico and is the most prominent automotive cargo transport finance business in the country.

BBVA México congratulates PACCAR Financial México for its successful placement and is grateful for entrusting us with the role of Lead Underwriter for this important transactions.