IDEAL Road Concession Readies Debt

Impulsora de Desarollo y el Empleo en America Latina’s (IDEAL) plan to raise up to MXP10bn ($786m) in Mexico’s domestic bond market at four of its toll roads is gaining momentum, with Moody’s assigning an Aa2 to the Banco Invex trust issuing on behalf the concessions. IDEAL plans to sell peso-denominated notes with a 30-year maturity. “The total amount approved under the Invex program is MXP 10bn and the entire amount is expected to be used in the first issuance,” the agency says. The four concessions involved are the Autopista Chamapa La Venta road serving the area to the west of Mexico City, the Tijuana-Tecate unit making up a portion of the road from Tijuana to Mexicali, the Libramiento de Toluca serving the Toluca region and the Autopista Tepic-Villa Union running from Tepic, Nayarit to Mazatlan, Sinaloa. All the roads are wholly-owned subsidiaries of IDEAL. Proceeds from the issuance will be distributed back to the originators on a proportionate basis and then to IDEAL to be used for additional investments in concessions in Mexico and Latin America, Moody’s adds. Inbursa has been named as a bookrunner.