Holland & Knight Assists in Final Stage of State of Veracruz Financial Reorganization
MEXICO CITY (December 16, 2013) The Mexico City office of Holland & Knight represented Banco Interacciones, S.A. in a MXP $695 million (US$53 million) financing to State of Veracruz on December 4, 2013. This financing is the last tranche of a financial reorganization of the State of Veracruz approved by the local Congress for a total amount of MXP $30 billion (US$2.3 billion) in August 2011.
"We were pleased to represent Banco Interacciones in this final tranche as it closes the financial reorganization of the State of Veracruz," said Holland & Knight Partner Alejandro Landa Thierry.
The financial reorganization was structured by means of a master trust (fideicomiso maestro) backed with federal revenues (participaciones federales) and the issuance of securities (VERACB, VERACB 12-2 and VERACB 12U) through an issuing trust.
"Public finance in Mexico has evolved dramatically in recent years," said Mr. Landa. "New amendments to the Fiscal Coordination Law (Ley de Coordinación Fiscal), which will go into effect in January 2014 and provide more transparency in this arena, are just the most recent examples of modernization."