Arzyz Metals’ $66.5 Million Credit Facility

Canales, Dávila, De la Paz, Enríquez, Leal, Sáenz and Hogan Lovells advised on the transaction

IDB Invest, a member of the IDB Group, provided a $66.5 million financial package to Arzyz Metals to increase its production capacity of aluminum alloys through the construction and equipment of a new plant located in the municipality of Cienega de Flores in Nuevo Leon, Mexico. Arzyz Metals is one of the leading companies in the branch of aluminum manufacturing and the commercialization of non-ferrous metals for various industries in Mexico.

The financing will contribute to job creation in the construction and operation phases of the new plant, will enable employee training, improve the company’s productivity and reinforce operations with its value chain, which is comprised largely of micro, small and medium-sized enterprises (MSME) providers.

The project includes investment in two production lines, in complementary equipment and in infrastructure to increase Arzyz Metals’ current production capacity. These will increase the efficiency of the aluminum recycling process and allow Arzyz Metals to meet part of the market demand not currently covered. This will help Arzyz Metals position itself as a leading local supplier, with shorter response times, especially for the automotive and mechanical industries.

The financial package has an eight-year tenor and consists of a $46.5 million IDB Invest loan and the mobilization of a $20 million loan from the China Co-financing Fund for Latin America and the Caribbean.

Canales, Dávila, De la Paz, Enríquez, Leal, Sáenz, advised Arzyz Metals with Bernardo Canales (Picture), Pablo Enríquez and Diego Plowells.

Hogan Lovells advised IDB Invest with Ricardo S. Martínez, Antonio de la Esperanza, René Arce Lozano, Luis Dávalos Bichara and Dinorah Pensado.

Involved fees earner: Bernardo Canales Fausti – Canales, Dávila, De la Paz, Enríquez, Leal, Sáenz; Pablo Enríquez – Canales, Dávila, De la Paz, Enríquez, Leal, Sáenz; Diego Plowells – Canales, Dávila, De la Paz, Enríquez, Leal, Sáenz; René Arce Lozano – Hogan Lovells; Luis Dávalos – Hogan Lovells; Antonio de la Esperanza – Hogan Lovells; Ricardo Martinez – Hogan Lovells; Dinorah Pensado – Hogan Lovells;

Law Firms: Canales, Dávila, De la Paz, Enríquez, Leal, Sáenz; Hogan Lovells;

Clients: Arzyz Metals; IDB Invest;

Author: Ambrogio Visconti.