Scotia Securitizes Mexican Road Credits

Scotiabank’s Mexican unit has priced MXP4.29bn in 2012 bonds backed by loans to a road package belonging to the Fonadin infrastructure fund, at a fixed rate of 8.35%. The AAA rated notes feature a guarantee from the Mexican government and were placed with a broad group of institutional investors, according to bankers on the deal. The loans were made to a package of four roads – Cuernavaca-Acapulco, Cordoba-Veracruz, Leon-Aguascalientes and La Tinaja-Acayucan – held by the Fonadin trust (previously known as Farac) in the late 1990s. Scotia’s capital markets unit managed the sale.