[ad_1]
The decision of the elected president, Andrés Manuel López Obrador, to cancel the project of the new Texcoco Airport can be a disaster for investors and shareholders in bonds.
The suspension of the $ 13 billion terminal opens the door to a default, resulting in mandatory amortization of all outstanding bonds, said Michael Fitzgerald, chairman of the Unit Law Firm of Latin America Paul Hastings.
Fitzgerald was part of the team of underwriters' legal advisors in many of the offers of these bonds.
The $ 6 billion bond of the new airport fell after Monday's announcement by the president-elect that the jobs would not be continued.
Instead, the former head of government said that chooses to build the option chosen by voters during the public consultation of last week: the construction of two tracks in the military base Santa Lucia and the redevelopment of Mexico City International Airport (AICM) and Toluca.
Bond yields maturing in 2047 rose 33 basis points this week to a record high.
Moreover, this Wednesday, a $ 21 million interest payment on bonds maturing in 2026 expires.
Another aspect that could be affected by the cancellation of the project is the $ 600 million of the instrument called Fiber E .
a hybrid between a limited partnership and a real estate investment trust
While the securities have a stipulated interest rate they are also hybrid securities with a capital component the value would drop significantly if there was no new airport to support it, said Michael Fitzgerald.
"The cancellation of the new airport will likely have a disastrous effect on the value of Fibra E. bonds and instruments." did he declare.
"None of the investors in the new airport had this cancellation ]".
The new government badured that it would negotiate with the bondholders of the New Mexico International Airport (NAIM) and would not request the cancellation of the capital.
Julio Scherer, appointed legal adviser to López Obrador, explained that the payment schedule obligations had not yet been defined.
"We must see what figure we will have to face next year," he said in an interview with El Financiero Bloomberg at the request of the final cost of the 39, cancellation of the project.
A representative of the Mexico City Airport Group did not respond to a request for comment.
Source link
