Oct. 14 (Bloomberg) -- Controladora Mabe SA, a Mexican appliance maker, plans to sell dollar bonds in overseas credit markets after benchmark bond yields tumbled, according to a person familiar with the transaction.

The Mexico City-based company hired HSBC Holdings Plc and Bank of America Corp. to arrange the sale, said the person, who declined to be identified because terms aren’t set. Mabe may sell as much as $300 million of 10-year bonds to refinance debt, according to Standard & Poor’s.

Mabe is tapping international credit markets as a global economic recovery drives down benchmark bond yields for emerging-market companies and governments. The extra yield investors demand to own emerging-markets corporate bonds instead of U.S. Treasuries narrowed to 3.91 percentage points yesterday from 9.59 percentage points at the end of last year, according to JPMorgan Chase & Co.’s CEMBI.

Calls to Mabe spokesman Rafael Nava weren’t immediately returned.

Mabe, which makes General Electric Co. appliances in Mexico for sale in the U.S. as part of a joint venture, sold $200 million of bonds in November 2005. The yield on the 6.5 percent bonds maturing in 2015 fell to 7.31 percent from 10.51 percent at the end of last year, according to Bloomberg data.

S&P rates Mabe BBB-, the lowest investment grade.

To contact the reporter responsible for this story: Emily Schmall in Mexico City at eschmall@bloomberg.net

Last Updated: October 14, 2009 12:12 EDT