Mexico’s $4 Billion Green Bond Offering

Cleary Gottlieb Steen & Hamilton, Jones Day, Paul Hastings and Galicia Abogados advised on the transaction

The Mexican Ministry of Communications and Transportation and Aeropuertos y Servicios Auxiliares, the Mexican government agencies overseeing Mexico’s airports, finalized a second bond offering for $4 billion to finance the construction and development of the new Mexico City International Airport.

The bond offering, which was assigned a green bond assessment based on the issuer’s commitment to allocate the proceeds to finance eligible beneficial environmental projects, is part of the third stage of the financing for the development of the airport. The new airport is expected to become the largest in Latin America and serve as a regional hub.

The transaction consists of an offering of $3 billion 5.500 percent senior secured notes due 2047 and $1 billion 3.875 percent senior secured notes due 2028. The bond offerings were conducted as private placements under Rule 144A of the Securities Act and outside of the United States in reliance on Regulation S. The transaction priced on September 13, 2017, and is expected to close on September 20, 2017. Citigroup, HSBC and J.P. Morgan participated in the transaction as global coordinators and joint bookrunners, BBVA and Santander participated as joint bookrunners and Credit Agricole, Inbursa, MUFG and Scotiabank participated as co-managers.

Cleary Gottlieb Steen & Hamilton LLP advised the Mexican Government with Jorge Juantorena (Picture), Arthur H. Kohn, Erika W. Nijenhuis, Manuel Silva, Alejandra Melgoza Morales, Isa A. Julson Barahona and Julián Cardona.

Jones Day advised the Mexican Government with Alberto de la Parra, Mauricio Llamas, Arturo de la Parra, Regina Fajardo Hurtado, Sylvia Koh and Paul C. Kuo.

Paul Hastings advised Citigroup Global Markets, HSBC Securities and JP Morgan Securities with Joy K. Gallup, Michael Fitzgerald, Steven Sandretto, Andrew M. Short, Thomas R. Sines, Eduardo González, Matthew Tippet and Jorge Garduno.

In Mexico, Galicia Abogados advised Citigroup Global Markets, HSBC Securities and JP Morgan Securities with Humberto Pérez-Rocha, Maurice Berkman, José Cortés, Rodrigo Rivera and María de los Ángeles Padilla.

 

Involved fees earner: Humberto Perez-Rocha – Galicia Abogados, S.C; Maurice Berkman – Galicia Abogados, S.C; José Alejandro Cortés Serrano – Galicia Abogados, S.C; Rodrigo Rivera S. – Galicia Abogados, S.C; María de los Ángeles Padilla Zubiría – Galicia Abogados, S.C; Alberto de la Parra – Jones Day; Arturo de la Parra – Jones Day; Regina Fajardo Hurtado de Mendoza – Jones Day; Sylvia Koh – Jones Day; Paul Kuo – Jones Day; Mauricio Llamas – Jones Day; Joy Gallup – Paul Hastings; Michael Fitzgerald – Paul Hastings; Thomas Sines – Paul Hastings; Eduardo Gonzalez – Paul Hastings; Andrew Short – Paul Hastings; Matthew Tippett – Paul Hastings; Jorge Juantorena – Cleary Gottlieb Steen & Hamilton; Manuel Silva – Cleary Gottlieb Steen & Hamilton; Alejandra Melgoza Morales – Cleary Gottlieb Steen & Hamilton; Isa Julson Barahona – Cleary Gottlieb Steen & Hamilton; Erika Nijenhuis – Cleary Gottlieb Steen & Hamilton; Julian Cardona – Cleary Gottlieb Steen & Hamilton; Arthur Kohn – Cleary Gottlieb Steen & Hamilton;

Law Firms: Galicia Abogados, S.C; Jones Day; Paul Hastings; Cleary Gottlieb Steen & Hamilton;

Clients: Citigroup Global Markets Ltd; HSBC; JP Morgan Securities; Government of Mexico;

 

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Author: Ambrogio Visconti