ARMONK, N.Y.--(BUSINESS WIRE)--April 10, 2006--MBIA Inc. (NYSE:
MBI) announced today that it is launching PADEIM (Programa AAA de
Infraestructura Mexico) to facilitate and expedite the issuance of
MBIA-insured securities for Mexican essential infrastructure projects
and services. Approved by CNBV, Mexico's securities regulator, the
Program is similar to shelf registrations in the U.S. The first
transaction to benefit from the new Program is the refinancing of
Autopista Mexico-Toluca, MXN 4.2 billion (USD 400 million)
MBIA-insured fixed-rate notes due 2028 issued in inflation-protected
units by a trust in Nacional Financiera S.N.C. (NAFIN). The
transaction, which closed April 7, 2006, is rated Triple-A by Moody's
Investors Service, Standard & Poor's Ratings Services, Fitch Ratings
as a result of MBIA's guarantee.
Capped at MXN 25 billion, the Program does not require the
creation of a special entity by MBIA nor is there any
cross-collateralization among the transactions issued through the
Program. Insured financings in the Program will consist of
infrastructure, energy and government financings, both sovereign and
sub-sovereign. The Program is also intended as a means of enhancing
secondary market liquidity of MBIA-insured paper in Mexico.
"The Program represents MBIA's commitment to help finance the
growing infrastructure needs of Mexico. In addition, MBIA can offer
Mexican investors the opportunity to purchase long-dated
Triple-A-insured securities for regional infrastructure projects in
local currency," said Eugenio Mendoza, MBIA managing director and head
of international new business development for the Americas. "MBIA's
financial guarantee also helps lower interest rates for the issuer and
enhances investors' liquidity."
The first transaction under the Program, the Autopista
Mexico-Toluca toll road is a 21-kilometer limited access highway
between Mexico City and Toluca, in the state of Mexico. The facility
has been in operation for over fifteen years but during that time has
become one of the most expensive tolled routes in the country on a per
kilometer basis. Pursuant to a memorandum of understanding among the
Secretaria de Comunicaciones y Transporte (SCT), Secretaria de
Hacienda y Credito Publico (SHCP), Concession Company PACSA, and MBIA,
the parties will implement a strategic toll rate reduction. Through
this initiative, rates will be more in line with the per kilometer
tariffs charged on other Mexican toll roads. This refinancing
transaction will extend the final debt maturity to 22 years and with
the resulting lower annual debt service, toll rates can be reduced by
an average of 40%. The toll rate changes will be implemented over the
next two months. Five new toll booths are being added at the main toll
plaza to handle increased volume and, within a year, electronic
tolling will be incorporated, further facilitating greater usage of
the roadway.
"This transaction will substantially lower the cost to drive the
toll road and thus encourage increased usage," noted Mr. Mendoza.
"This is the first time toll rates have been reduced by this magnitude
anywhere in Mexico. In addition, the area economy is strong and toll
road traffic growth has been favorable despite the current rates,
which makes this transaction a strong credit. This new long-term
Triple-A-rated insured financing combined with attractive interest
rates enables substantial savings to be passed on to motorists."
MBIA has been an active participant in the Mexican capital markets
since 1994 insuring over USD 5 billion in net par outstanding. In
addition to toll road financings, MBIA has insured a number of
structured trade securitizations in Mexico for entities such as Pemex
and BBVA Bancomer.
MBIA Inc., through its subsidiaries, is a leading financial
guarantor and a provider of specialized financial services. MBIA
provides innovative and cost-effective products and services that meet
the credit enhancement, financial and investment needs of its public
and private sector clients, domestically and internationally. MBIA
Inc.'s principal operating subsidiary, MBIA Insurance Corporation, has
a financial strength rating of Triple-A from Moody's Investors
Service, Standard & Poor's Ratings Services, Fitch Ratings, and Rating
and Investment Information, Inc. Please visit MBIA's Web site at
http://www.mbia.com.
CONTACT: MBIA Inc.
Michael Ballinger, 914-765-3893
OR
Elizabeth James, 914-765-3889
SOURCE: MBIA Inc.