Category: Mexico

Mexican infrastructure operator Pinfra has won a 30-year concession to build, operate and maintain the MXP2.7bn Atlacomulco-Palmillas north of Mexico City. The 54-kilometer, four-lane highway will communicate with existing highways to connect Mexico City with the major industrial hubs of Toluca and Queretaro, Pinfra says. “This project will be of great importance for the center of the country,” the company adds.

Entertainment company CIE is plans to sell MXP500m in 2010 floating rate bonds. The gaming operator is looking to refinance existing short-term debt, according to an investor relations officer. The transaction is rated A+/A3 on a national scale and expected as soon as Friday. It is the second offering from a MXP3bn shelf.

Mexican telecom giant Telmex Internacional, the entity recently spun off from Telmex, hopes to approve a plan to buy back up to MXP10bn in shares. The company called for a shareholder meeting on July 9 to discuss the deal. Separately, the Mexican company is heard eyeing Telecom Argentina, Brazil’s Global Village Telecom and Chile’s Grupo GTD as possible acquisition targets, according to bankers familiar with the company. Telmex Internacional is understood to be the largest spin-off ever done in LatAm, valued at $16bn.

Mexican retailer Grupo M has raised $100m in a 2-part loan facility for its Central American operations. Dutch development bank FMO provided a $35m 7-year loan, while Citi underwrote and syndicated a $65m 5-year piece at Libor plus 400bp. Six commercial banks participated in the syndication. “This syndicated loan with Grupo M is a landmark and unique transaction in Central America due to the amount committed and the legal structure in which seven jurisdictions were involved,” says Jorge Mora, a vp at Citi involved in the deal.

US treasury secretary Henry Paulson will today attend a meeting in Mexico hosted by finance minister Agustin Carstens. Paulson joins finance officials from LatAm, the Caribbean and Canada as well as heads of the IMF, World Bank and IDB to address a range of economic issues and areas of regional cooperation. The meetings will cover the global and regional economic outlook, the role of international financial institutions in the region and areas of strategic cooperation.

A group of Mexican investors has purchased 3.5% of Spain’s Banco Popular for $925m according to a filing with the Spanish regulator. The Mexican group has used a UK based vehicle called Blueprime to make the purchase, Fabian Picardo, a lawyer representing the entity, tells LatinFinance. Blueprime purchased 42m shares from Madrid based Grupo Hispania for EUR14.20 per share, according to Hispania. Blueprime aims to acquire 20% of the bank and is in talks with several shareholders for further share purchases, the company says.

Net Servicos de Comunicacao has obtained a loan for $200m from Mexico’s Inbursa. The facility due 2019 carries an annual rate of 7.875%. It plans to use proceeds to finance the acquisition of companies operating under the BIGTV brand name agreed in May, as well as for funding organic growth. “When we were looking at different options, Inbursa presented the best conditions,” explains an IR official. He notes that Net has considered various international lenders before, but this is the first deal in Mexico.

Spanish developer Grupo Lar will invest MXP1.1bn in a new housing development in Puebla, Mexico, the company says. The new development will include 469 houses, as well as parking stations and other amenities. Construction on the site is expected to start in Q3 2008, Lar adds. The company already has several housing developments in Mexico City, Cancun and Guadalajara.

Moody’s has chopped the outlook on Ford Credit de Mexico, local national scale debt ratings to negative from stable. At the same time, the Baa1.mx long-term debt ratings were affirmed. The action follows Moody’s decision to cut Ford Motor Credit Company’s outlook to negative from stable, the agency says. Ford Credit de Mexico’s debt ratings are based on irrevocable and unconditional guarantees from the parent.

Mexican debt markets remain active, partly due to access and relative value for issuers associated with tougher external markets conditions, particularly in the US. BBVA Bancomer is expected to price up to MXP4.1bn in 2027 RMBS as soon as Wednesday. The notes are rated AAA on a national scale and backed by a pool of 8,200 of Bancomer-originated mortgage credits, according to a regulatory filing. BBVA’s own capital markets unit is managing the sale. Fellow lender Banorte is preparing up to MXP3bn in 2018 bonds to strengthen its capital base. Also set for Wednesday is Financiera Independencia, with MXP1bn in 2011 floating-rate bonds via HSBC.