Astris Finance is pleased to announce the successful financial closing of the Mx$ 2,150 mm (USD 165 mm) Audi Platform project.
Watch the Project's video on YouTube at: http://www.youtube.com/watch?gl=US&client=mv-google&hl=en&v=a97mSYtCHR4&nomobile=1
The Project is developed by Mexican contractor Codesa under a new PPP framework in the State of Puebla, Mexico. The Project consists in delivering the necessary infrastructure upon which Audi´s new manufacturing plant will be built. The manufacturing plant is located in San Jose Chiapa, Puebla and will be responsible for worldwide production for the next Audi Q5 in 2016. Annual capacity is projected to reach 150,000 units. This is one of the most visible, strategic foreign direct investments in the auto manufacturing sector in the Latin America region.
The Project was awarded to CODESA by the State of Puebla. It was a structured as a public works contract under a PPP scheme called “Proyectos de Inversión” (Investment Projects). Under this scheme, CODESA is responsible for building the Project to meet Audi´s standards and raising the appropriate financing. During the construction period, the State of Puebla will issue acceptance certificates (“Certificados de Aceptacion Definitiva” or “CAD”) to CODESA as the works are completed. Each CAD represents an irrevocable and unconditional obligation from the State of Puebla to pay the amounts there included. The Project is the first to be structured under the Investment Projects scheme. It is expected that it will be used for various infrastructure projects during the coming years in Puebla.
Astris Finance acted as mandated financial advisor to CODESA leading the structuring, negotiating, placement, and due diligence process. The financing takes the form of a senior non-recourse 15-year facility provided by Banco Interacciones and backed by the CADs. This facility is complemented by a Mx$260 mm (USD 20 mm) VAT facility. One salient aspect of our mandate was the structuring and negotiation of an enhancement mechanism under which The State agreed to pledge remnants from its federal transfers to further increase the creditworthiness of the structure.