BBVA and BofA to Underwrite Mexico School Bonds, Ministry Saysby and
Pena Nieto is targeting 50 billion pesos by the end of 2018
Debt proceeds will go to fix up as many as 32,000 schools
Banco Bilbao Vizcaya Argentaria SA and Bank of America Corp. will serve as the underwriters for Mexico’s education infrastructure bonds, as President Enrique Pena Nieto targets raising 50 billion pesos ($3 billion) through 2018 to improve underdeveloped or crumbling schools, largely in the poorer south.
The government must discuss the securities with potential investors before it can estimate the interest rate the notes will carry, the Finance Ministry’s press office said in an e-mailed statement Tuesday. The Pena Nieto administration plans to sell at least 4.5 billion pesos of the debt by year-end to help make improvements to 32,000 schools serving 5.2 million students, Deputy Finance Minister Fernando Aportela said in a Sept. 4 interview.
“We’re scheduling meetings with investors with the intention of providing details on the structure,” Madelaine Girod, a spokeswoman for Bank of America, said by telephone.
The plans to sell education infrastructure bonds were included among 10 measures Pena Nieto promised in his state of the nation speech last month. He also announced the creation of a new energy and infrastructure financing vehicle called Fibra E, for which the government released regulations last week.
BBVA’s Mexico unit didn’t immediately respond to requests for comment.