Sonora State Closes Loan, Plans Hefty Takeout

The Mexican state of Sonora has closed a MXP4.6bn 30-year peso bridge loan to support its Plan Sonora Proyecto infrastructure plan. The AA (Fitch) facility arranged by Banorte and Project Finance Associates (PFA) pays 100bp over 28-day TIIE, PFA executive director Mauricio Gutierrez de Gregory tells LatinFinance. It is backed by tax receipts. By the end of the year, the facility is expected to be replaced with a takeout of up to MXP10bn in 30-year bonds. The jumbo deal, which will sold to local pension funds and insurance companies, will also refinance $520m equivalent in state debt. The fixed rate bond will issued by the end of 2008 through PFA and Banorte, Gutierrez says. The plan is to have UDI and MXP tranches, and PFA is looking for a monoline wrap.