Mexican Toll Road Sets Bond Target

The Monterrey-Saltillo toll road is scheduled to sell up to MXP4.5bn ($345m) in Mexico’s domestic bond market as soon as next week. The concession owned by Spain’s Isolux-Cosan is looking to price the 25-year UDI-denominated notes at UDIbonos+390bp, according to a source familiar with the sale. Proceeds will be used to repay bank loans and subordinated debt with the government Fonadin fund. The toll road has been operational for almost a year. Santander, ING and Bank of America Merrill Lynch are bookrunners on the transaction, rated AA/AA+ on a national scale.