Ideal Plots Toll Road ABS Sequel

Ideal has filed for a new securitization of toll road concessions, in a follow-up to a MXP7.1bn transaction it brought last year. The Mexican builder and concessionaire controlled by Carlos Slim is preparing a less ambitious deal of up to MXP2.4bn through a combination of UDI and floating-rate MXP-denominated bonds due 2019, the second piece of a MXP50bn program. A roadshow should start as soon as this week, says an official familiar with the offer. As in last year’s successful transaction, the bonds will be backed by revenues from the Champa-La Venta, Libramiento de la Ciudad de Toluca, Tijuana-Mexicali and Tepic-Villa Union toll roads. The trust holding the concessions represented an innovation for Mexico in that new roads may be added to it, though none have yet. Last year’s leads Inbursa and Credit Suisse are back in the driving seat and a deal is expected as soon as late August. A recent MXP2.2bn 2-year deal from Cemex has offered hope that Mexican investors may be ready again for ABS. However, Ideal is more conservative on tenor this time, and it is scaling back the tenor to 10 years and leaving tranche allocations to be decided on the day of sale. Last year, it sold MXP1.5bn in 2015 notes at TIIE plus 28bp, MXP1.3bn in 2036s at 10.50% fixed, and MXP4.3bn-equivalent in 2036 UDI-denominated bonds at 5.69%.