BEST STRUCTURED FINANCING/INNOVATION
The State of Mexico (Edomex) in August issued a much anticipated 4.1 billion peso 20-year local bond, the first securitization of future flows of income from residential property fees from a Mexican state.
The deal opens the door
for other LatAm sub-sovereigns to work with new guarantors, as
well as for other Mexican states to use the format.
"We have since received
enquiries by issuers looking to replicate the deal," says a DCM
banker at one of the leads. "But it will be a while before we
see them issue bonds as the process takes a long time, and
needs approval from various authorities," he adds. Joint leads
were Banamex and HSBC.
"This transaction generates new options for investment for
the local market, opens new sources of funding for
infrastructure development, and strengthens the Mexican capital
market," says Enrique García, president of CAF. The
Andean multilateral provided its first...
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