A two-stage financing deal to build a new natural gas
pipeline in Mexico is being welcomed as a landmark transaction
in the Mexican energy market, and a template for future deals
in the region.
Milbank Tweed Hadley & McCloy advised the lenders, BBVA
Bancomer, the Bank of Tokyo-Mitsubishi, CaixaBank and Mizuho
Bank in providing a loan for the projected 36-inch natural gas
pipeline. The pipeline is owned by a subsidiary of Grupo Carso,
a global conglomerate company, in turn owned by Carlos
When complete, the pipeline will run across northern Mexico
for approximately 380 miles, from
Samalayuca, in the Mexican state of Chihuahua, to Sásabe
in the state of Sonora. The deal is proceeding on the
build, own, operate (BOO) model.
According to counsel who worked on the loan, the pipeline
deal is also a landmark transaction, one that will be
referenced by the market going forward....