Pinfra Holds Jumbo MXP Road ABS

Mexican infrastructure operator Pinfra has delayed a MXP6.5bn securitization to refinance debt tied to the Mexico-Toluca (Mextol) toll road concession which had been set to price today. “It has been postponed, but the structure hasn’t changed, it’s still in the market,” Pinfra CFO Carlos Cesarman tells LatinFinance. He adds that the delay was caused by regulatory issues remaining to be straightened out, rather than external problems or choppy market conditions. ING is managing the transaction, which coincides with widespread volatility that has made investors much more selective and vigorous in their credit work. In addition, Banxico meets Friday, and analysts expect another 25bp hike. Local investors are still cash rich but they want higher returns to cover the uptick in risk, particularly for structured products, where “back to basics” is the mantra. Borrowers generally have been unwilling to concede sufficient spread. Pinfra had planned to sell around MXP6.5bn equivalent in 2030 bonds denominated in the UDI inflation-linked unit to replace some MXP5.57bn in UDI bonds issued in 2006. Funds remaining after the repurchase can be used for additional construction.