By: Steven Ongenaet
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Advising Barclays in connection with the public offering of structured notes (CERPI’s) on the Mexican stock exchange.
Barclays Capital Casa de Bolsa, S.A. de C.V., Grupo Financiero Barclays (“Barclays”), as underwriter, is preparing the public offering of structured notes (certificados bursátiles fiduciarios de proyectos de inversión) or CERPIs in the Mexican market with a target initial issuance of $800 million Pesos plus additional commitments, through a capital call mechanism, for a targeted total committed issuance amount of $4 billion Pesos (approximately US$216million). The purpose is to create a fund focused on the entire real estate value chain.
This will be the first CERPI fund exclusively for the real estate sector in México. CERPIs represent the evolution of CKDs and mimic the corporate governance of international private equity funds in the sense that the general partner will make all the investment decisions.
This is the first time that a company has issued CerPIs, one of the newest asset classes in Mexico presented in 2015. NHG acted as legal and tax counsel to Barclays. Considering that CerPIs do not have a specific tax regime established in Mexican tax laws, it was essential to confirm that the tax treatment afforded by the sponsor to the Mexican trust used was consistent with the investment objectives as per the general tax rules.
The offering was covered in an article published by LatinLawyer.