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Mexico buys back $480 mln in bonds for canceled airport

Credit: REUTERS/EDGARD GARRIDO

MEXICO CITY, Dec 7 (Reuters) - A trust administrated by the Mexican government has bought back around $480 million in bonds issued to finance a partially built Mexico City airport that was later canceled, the trust's operator said late Wednesday.

Investors holding notes with maturities from 2026 to 2047 participated in the buyback, the Grupo Aeroportuario de la Ciudad de Mexico said, trimming the overall outstanding indebtedness to around $3.7 billion.

The trust in late November had sweetened the tender offer, extending early bid premiums through the end of the buyback. It had sought to re-purchase up to $993.2 million but pulled in less than half of that.

"The overall feedback received from investors who decided not to participate in the tender offers was that they were satisfied with their investment in the notes," the airport group managing the trust said in a statement.

Mexican officials had in past months floated buying back all of the outstanding debt early, which then totaled $4.2 billion.

The bonds were to fund the construction of an airport on the outskirts of Mexico City meant to alleviate pressure from the Mexico City International Airport (AICM). However, President Andres Manuel Lopez Obrador scrapped the project after he was elected in 2018.

Since then, funds brought in from the AICM's usage tax have gone to repaying the outstanding bonds, which authorities have acknowledged has shorted the budget for repairs at the decades-old hub.

(Reporting by Kylie Madry; Editing by Cassandra Garrison and Mark Porter)

((Kylie.Madry@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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