Mexico Toll Road Aims for Local Financing

The Monterrey-Saltillo toll road plans to raise some MXP4bn ($311m) in Mexico’s domestic bond market, according to sources familiar with the transaction, likely in November. The idea is to sell UDI-denominated notes with maturities of 22 or 23 years, with proceeds repaying bank loans and subordinated debt with the government Fonadin fund. The toll road, owned by Spain’s Isolux-Cosan, has been operational for almost a year. Santander, ING and Bank of America Merrill Lynch are bookrunners on the transaction.