GANA Brings Back MXP ABS

An OHL subsidiary priced an MXP1.7bn 2031 UDI-denominated toll road securitization at par with a 6.64% coupon to yield 338bp over the 2025 Udibono benchmark. The pricing is in line with 6.60%-6.70% price talk for OHL Mexico’s Grupo Autopistas Nacional (GANA). The deal was only marginally oversubscribed, with MXP200m of extra demand. The proceeds will be used to repay financing that was used to fund the construction of a 123km toll-road from Puebla to Veracruz. The bonds, rated AA on a national scale, are backed by the road operator’s toll revenues. The main investors were pension funds, investment funds and banks. “This was attractive because there are not many toll road securitizations and also because OHL, the sponsor, has good management and worldwide operations,” says one participating investor. Another buysider adds that the road backing the bonds is one of the few in Mexico that experienced a rise in revenues during the crisis. “The spread, together with the fact that the toll road backing the bonds is doing well, means it is an attractive issuance,” he says. Santander and Invex were bookrunners on the deal. The last toll road ABS in Mexico was the MXP2bn 2023 done by Agrupacion de Companias Constructoras de Veracruz for the Cardel-Veracruz road in May 2010. The deal, through Banco Interaciones, got a 6.0 % yield.