BEST SUB-SOVEREIGN FINANCING

BEST SUB-SOVEREIGN FINANCING

Mexico

The transaction also creates a new role for infrastructure development bank Banobras. “Parts of the deal may be replicated, particularly the guarantee,” State of Mexico’s finance secretary Luis Videgaray tells LatinFinance. The amortizing deal in 20, 25 and 30-year tranches, with roughly a third of the amount in each, has an average fixed rate period of 16 years. The weighted average spread is 47 basis points over 28-day TIIE, versus 170 basis points on the prior debt, which averaged just four years fixed. The average fixed rate dropped to 9.10% from 13.14%. The deal benefitted from significant ratings upgrades – including six notches from Moody’s – and market i

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