The banking arm of one of Mexico's leading financial institutions announced on 4 April it had closed its largest ever dollar-denominated commercial paper programme. According to Banco Nacional de Mexico (Banamex), the US$500 million facility is substantially oversubscribed and the largest ever launched by the bank.

The programme's structure has allowed Banamex to obtain the highest ratings possible in the market for US domestic commercial paper. It is backed by an irrevocable letter of credit (L/C) provided by Barclays Bank, syndicated to 36 international banks.

L/C helps secure top ratings

Strong support for the programme from international participants has allowed the programme to access Moody's P-1 and Standard & Poor's A-1+ ratings for short term dollar paper.

The programme puts Banamex in an excellent position to meet Mexican loan demand for US dollars and according to CEO Roberto Hernandez, will allow the bank "to continue holding the leading position in terms of lending in Mexico."

Banamex is the banking arm of Mexico's second largest financial group, Banamex-Accival.

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