August 1, 2016

Milbank Advises Lenders in Financing for Major Mexican Natural Gas Pipeline

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Firm has handled multiple recent natural gas pipeline financings in Mexico and cross-border; financing led by partners Dan Bartfeld and Daniel Michalchuk

In another major Mexico pipeline transaction handled by its Global Project, Energy and Infrastructure Finance Group, Milbank, Tweed, Hadley & McCloy LLP has advised BBVA Bancomer S.A., The Bank of Tokyo-Mitsubishi UFJ, Ltd., CaixaBank SA and Mizuho Bank Ltd. in providing a loan for the construction by Carso Gasoducto Norte of a natural gas pipeline between Samalayuca, Chihuahua and Sásabe, Sonora.

Milbank partners Dan Bartfeld and Daniel Michalchuk led the Global Project, Energy and Infrastructure Finance team in advising the lenders. They were assisted by senior associate Alejandra Garcia Garcia and associate Jennifer Figueroa.

The 36-inch natural gas pipeline owned by a subsidiary of Grupo Carso S.A.B. is scheduled to run across northern Mexico for approximately 380 miles from Samalayuca, Chihuahua to Sásabe, Sonora. Its carrying capacity of 472 million cubic feet per day will supply Mexico’s state-owned electricity provider Comisión Federal de Electricidad (CFE) with much needed natural gas.

Mr. Bartfeld, head of Milbank’s Global Project, Energy and Infrastructure Finance Group, said: “As Mexico continues to develop its natural gas infrastructure, Milbank is pleased to again play a key role in advising major international financial institutions helping Mexico provide for the energy needs of the country. We are pleased to add this latest transaction designed to supply natural gas to the CFE to our list of successful Mexican financings.”

Mr. Michalchuk added: “Our Global Project, Energy and Infrastructure Finance team has played a pivotal role in a number of key energy financings in Mexico, including pipeline infrastructure that will deliver US natural gas into the country from key hubs in Texas. This transaction further showcases our strengths in large-scale energy financings in Latin America.”

In the past several years Milbank has advised on billions of dollars of pipeline projects on the US-Mexico border, involving more than 15 financial institutions and many of the leading Mexican and international sponsors/developers. Milbank currently has the lead legal role in several additional major pipeline transactions in the US and Mexico.

About Milbank

Milbank, Tweed, Hadley & McCloy LLP is a leading international law firm that provides innovative legal services to clients around the world. Founded in New York 150 years ago, Milbank has offices in Beijing, Frankfurt, Hong Kong, London, Los Angeles, Munich, São Paulo, Seoul, Singapore, Tokyo and Washington, DC.

Milbank’s lawyers collaborate across practices and offices to help the world’s leading commercial, financial and industrial enterprises, as well as institutions, individuals and governments, achieve their strategic objectives