Citigroup, as sole lead arranger and lender, is coordinating a Mexican peso (US$40.856mn equivalent) US Ex-Im Bank credit guarantee facility for Aerovias de Mexico (Aeromexico).
The loan is for the financing of spare parts and maintenance services.
Citigroup, through Banamex, was selected to arrange the financing for Aeromexico’s purchases during 2004 year.
The financing is the first peso-denominated financing in Mexico supported by US Ex-Im.
By having local currency in the transaction, US Ex-Im recognised the additional benefits of not having the risk of convertibility and transferability, hence applying a discount to its exposure fee.
Highlights for Aeromexico were the achievement of the highest possible financing coverage, the longest period of repayment and the lowest risk premium available from US Ex-Im Bank under OECD guidelines.