BANCO NACIONAL DE OBRAS Y SERVICIOS PÚBLICOS (BANOBRAS) GRANTS CREDIT FOR USD 160 MILLION DOLLARS TO CYDSA FOR ITS UNDERGROUND HYDROCARBON STORAGE BUSINESS
México City.- Rodríguez Dávalos Abogados (RDA), through Alonso Gómez del Campo (Principal) and Anaid López (Senior Associate), advised the National Public Works and Services Bank (BANOBRAS), the agent bank, during the negotiation of a USD $160 million loan to refinance CYDSA's underground hydrocarbon storage business. Specifically, this refinancing will be destined to the development of the first natural gas storage facility in a saline cavern in Mexico, with a total storage capacity of 1.8 million barrels.
This syndicated loan was granted jointly by Banobras, the National Bank of Foreign Trade (Bancomext) and Banorte, and will serve to continue with the realization of the first system in Mexico and Latin America to provide underground gas storage services to Pemex during a period of 20 years.
Jurisdictions involved: Mexico
Other firms involved in the transaction: White & Case.
CYDSA, S.AB. de C.V., based in Monterrey, Nuevo León, is a company listed in the Mexican Stock Exchange (BMV) and specializes in three areas of operation: (i) chemical products and specialties, (ii) electric power cogeneration and (iii) underground storage of hydrocarbons. This company produces salt for domestic consumption and industrial applications; chlorine, caustic soda and refrigerant gases, and its products are exported to more than 15 countries around the world. In addition, it generates electricity through generation plants, and processes and stores LP gas in saline caverns. It has more than 20 subsidiaries in 9 locations in Mexico.