Mexican Lender Gets Debt CCD

Mexican specialty finance institution Navix has closed a MXP4bn infrastructure-focused certificado de capital de desarrollo (CCD) transaction, the first such deal to focus fully on debt investment. The 10-year deal creates a fund that will make loans to contractors and sub-contractors of state-owned energy companies Pemex and CFE, according to regulatory documents. A person close to the deal, talking on condition of anonymity, notes strong expectations for funding needs from the sector going forward. Credits can range from MXP10m to MXP700m or 15% of the portfolio, whichever is greater. As is customary for CCDs, the individual certificates priced at MXP100. The great majority of investors were from Mexico’s Afore sector, says the person close to the deal. Investors will get the interest from the loans and a portion of the loan fees, with Navix getting the remainder of the commissions and an administration fee. In documentation, Navix estimates an 18% return for investors. It will eventually look to securitize all or part of the portfolio, market conditions permitting. Navix will also co-invest about $100m equivalent of its own funds along with those raised in the CCD, according to the person on the deal. Banamex and Actinver managed the sale, the tenth in the 1-year history of the asset class. It is the first CCD to be completely dedicated to debt investment, though a special situations fund from Promecap closed in July planned for a mix debt and equity, with a majority expected to be debt.