Holland & Knight Advises on Trio of Loans to Mexican States

MEXICO CITY (November 13, 2020) – Holland & Knight recently advised Banco Multiva on three loans, two for the Mexican State of Sonora and one for the Mexican State of Yucatán, for an aggregate amount of MXN$440 million (approx. US$20 million). The transactions closed on October 30.

Banco Multiva was selected as lender to the states of Sonora and Yucatán through a competitive bidding process. The loans will help the states cover short-term needs, including expenses related to the COVID-19 pandemic.

Holland & Knight Partner Alejandro Landa Thierry and Associate Rosa María Cuevas led the firm's representation of Banco Multiva on the three transactions.

On October 19, the Chamber of Representatives (Cámara de Diputados) in Mexico approved a draft of reforms to the Law of Financial Discipline of the States and Municipalities. The reform will allow state governments to contract and restructure financing without the need for authorization from the local legislature when there are extraordinary situations or health emergencies in order to reactivate the country's economy.

"This is a much appreciated reform that will provide financial flexibility to local governments and help them support their communities during these difficult times," said Mr. Landa Thierry.