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Mexico’s Proequity to Sell Structured Notes

10 May 2010

(Dow Jones) May 10, 2010 – Private equity firm Promotora Proequity SC said on Monday that it plans to sell up to 1.6 billion pesos ($128 million) in equity-linked structured notes later this year.

Proequity will issue the notes, locally known as CKDs, through a trust, Proequity said in a preliminary prospectus filed with the Mexican Stock Exchange.

The proceeds from the transaction will be used to buy stakes in privately held firms, it said.

Bulltick Capital Markets is acting as the lead placement agent in the deal.

A toll-road subsidiary of Mexico's largest construction company, Empresas ICA SAB (ICA), was the first company to sell CKDs last October, raising MXN6.55 billion.

CKDs are a new type of asset class in Mexico that were originally designed to attract greater investment in infrastructure projects.

By Ken Parks