Mexico City Airport Trust Announces $2 Billion in the Largest Green Bond Offering in Latin America

September 23, 2016

NEW YORK – Paul Hastings LLP, a leading global law firm, represented Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC as global coordinators and initial purchasers, as well as a number of co-managers, in connection with Mexico City Airport Trust’s offering of $2 billion of debt securities. The securities were issued in two tranches of US$1 billion of 4.250% Senior Secured Notes due 2026 and US$1 billion of 5.500% Senior Secured Notes due 2046, marketed under Rule 144A and Regulation S. The bonds qualified as “green bonds” in respect to the use of proceeds, making this offering the largest green bond issuance in Latin America to date.

Last October, Paul Hastings represented the global coordinators, administrative agent and lenders in a $3 billion bank financing for the new International Airport in Mexico City, which is being built to replace the existing Benito Juarez International Airport. Paul Hastings’ clients, Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC acted as global coordinators of the loan, and were lead arrangers for the bond financing that followed to provide additional financing needed for this airport project. The new airport is expected to require approximately $5 billion of additional financing.
Both bonds and the revolving credit facility are secured by the same collateral and are pari passu in right of payment, subject to the terms of an intercreditor agreement that governs the senior secured debt.

The Paul Hastings team was led by partners Mike Fitzgerald and Joy Gallup, and included partners Steven Sandretto and Andrew Short, of counsels Elicia Ling and David Makso, associates Eduardo Gonzalez and Joshua Milgrom and foreign attorney Gerardo Guajardo-Andrade.
At Paul Hastings, our purpose is clear — to help our clients and people navigate new paths to growth. With a strong presence throughout Asia, Europe, Latin America, and the U.S., Paul Hastings is recognized as one of the world’s most innovative global law firms.