Cases & Deals

Prodemex completes US$306 million IPO of Fibra-E Shares

Clients Promotora y Desarrolladora Mexicana, S.A. de C.V.

Jones Day advised Promotora y Desarrolladora Mexicana, S.A. de C.V. (Prodemex), as sponsor, in an initial public offering of an energy and infrastructure investment trust (Fibra-E) in the amount of US$306 million for the acquisition of 50 percent of equity interest in three subsidiaries of Prodemex (the "Projects"), which hold certain long-term service contracts in connection with two prisons located in Jalisco, Durango, and a toll road "Solidaridad Las Torres" located in Toluca, State of Mexico, respectively. The price of the certificates was MXN$18.5 pesos per each certificate and the proceeds were used to pre-pay certain financial debt to release guarantees and liens involving the Projects and their assets.

The operation represented a high level of complexity due to the strict regulation and confidentiality to which the Projects are subject.

There are only four IPOs of the kind in Mexico and Jones Day has participated as counsel to the issuers in two of them.

Prodemex is a 100 percent Mexican company founded in 1996 that has more than 21 years of experience in the development and construction of infrastructure projects for the country's public and private sectors.