As Farac II, the second toll road package of 11 due for auction in Mexico, nears its September deadline for proposals, it is to be hoped that hindsight has played a key role in what bidders come up with.
The first toll road deal, in October 2007, was a peso-denominated financing package worth Ps37.1 billion ($3.3 billion) – the biggest in Mexico’s history. But since Farac I closed, the international markets have been in free fall. It is unlikely in the present climate that Santander, which solely structured and underwrote the transaction, would be able or willing to front...
