DF Tax ABS Set for 1-2 Weeks

The government of Mexico City is targeting next week or the following to price a securitization of tax proceeds received from the federal government, according to a government official. The transaction is awaiting regulatory approval, but terms remain as previously announced. The transaction will be for up to MXP2.0bn and is the first in a series of 3 this year that will total MXP5.3bn. The government has the option of spreading the issue among a 2015 tranche paying a spread over TIIE, a 2020 paying fixed rate, and a 2025 portion denominated in UDIs. Proceeds will help fund public works, most notably the construction of a new metro line. Deutsche Bank is managing the sale, rated AAA on a national scale.