THE GOVERNMENT OF COAHUILA AND ITS CREDITOR BANKS, INCLUDING BANORTE, REACH AN AGREEMENT FOR REFINANCING THE STATE’S DEBT.
Sep 30, 2011
OTC Disclosure News Service
Monterrey, N.L. –
Grupo Financiero Banorte, S.A.B. de C.V. (”GFNORTE”) (BMV: GFNORTEO) informs that the Government of Coahuila and various financial institutions, including Grupo Financiero Banorte, reached an agreement to formalize the refinancing of the State’s liabilities. This agreement is based on Coahuila’s Public Debt Law and the decree approved by the local Congress in August and September, respectively.
The debt refinancing contemplates a simple loan for Ps. $33.86 billion with a 20 year maturity plus additional refinancing costs. The agreement provides long term viability to the state’s finances.
As part of this agreement, GFNorte restructured the debt to fully refinance Coahuila’s commitments with Banorte and Ixe, all this debt is refinanced into one loan, which is fully guaranteed with Federal Transfers (Participaciones Federales), Payroll Taxes (ISN for its acronym in Spanish) and the Federal Fund for the Strengthening Local Entities (FAFEF for its acronym in Spanish).
GFNORTE reiterates its commitment to the financial community and investors to maintain modern and transparent in information disclosure, strictly in compliance with Mexico’s “Ley de Mercado de Valores” (Securities Market Law).
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