Veracruz Eyes Repeat Vehicle Securitization

The Mexican state of Veracruz is preparing to sell MXP1.5bn in bonds backed by vehicle ownership tax revenue, using the same structure as a 2006 vehicle tax securitization. Veracruz aims to split the issue into equal MXP and UDI-denominated tranches due 2036. A banker on the deal says it could come this month, but the issuer awaits opportune market conditions. Banorte and Value are managing the transaction, rated AA/AA+ on a national scale. Veracruz last securitized vehicle registration taxes in December 2006, placing MXP3.76bn in 2036 UDI-denominated bonds at 5.32% and MXP1.11bn in MXP-denominated 2036 notes at TIIE plus 95bp.