Hogan Lovells counsels on Tamaulipas’ refinancing of public debt

Hogan Lovells has counselled the State of Tamaulipas in the refinancing process of its public debt of approximately USD $740 million.

Thanks to this operation, the state government will be able to direct the resources to improving critical public services and improving various infrastructure projects.

In this refinancing process, Banco Mercantil del Norte, Institución de Banca Múltiple, Grupo Financiero Banorte (Banorte), BBVA México, Grupo Financiero BBVA (BBVA) and Banco Nacional de México, part of Grupo Financiero Banamex (Banamex), were selected as lenders to the State of Tamaulipas through a public bidding process in accordance with the Ley de Disciplina Financiera para Entidades Federativas y Municipios (LDF).

The transaction was executed in terms of the LDF, and provides a secure structure for the lenders, as the credit contracts are backed by state revenues, which are part of a trust.

Tamaulipas is a state that occupies a central position in the north-eastern region of Mexico. Bordered to the north by the United States, to the east by the Gulf of Mexico and to the south and west by the states of San Luis Potosí and Nuevo León, Tamaulipas has a strategic location that not only connects Mexico to the United States, but also contributes significantly to Mexico’s economic growth through its importance in the automotive, energy, manufacturing and agro-industrial sectors.

Hogan Lovells’ team was led by partner René Arce Lozano (pictured), with support from lawyer Ana Catalina Decanini, and associates Armando Neavez, Alejandra González, Dinorah Pensado and Regina de Lira.