LatAm Capital Advisors Announces Closing of Innovative Financing for the State of Mexico

ARMONK, N.Y.--(BUSINESS WIRE)-- LatAm Capital Advisors, Inc. (LCA), an indirect subsidiary of MBIA Inc. (NYSE: MBI), today announced that it acted as structuring agent and financial advisor to the State of Mexico in connection with the August 23, 2010 closing of the sale of debt securities on the Mexican Stock Exchange (Bolsa Mexicana de Valores) by Promotora de Infraestructura Registral (PROIN), a special purpose financing vehicle formed by LCA, in a transaction for the State of Mexico. Proceeds of the sale will fund the completion of the modernization of the State of Mexico’s systems for the registration of real property and various other public infrastructure projects in the state.

The certificates were issued in two separate series that mature in 2030: series A (PROIN 10) for MXN2.77 billion and series B (PROIN 10-2) for MXN1.3 billion. The PROIN 10 certificates are supported by an investment guarantee of the Overseas Private Investment Corporation (OPIC) of the United States of America and the PROIN 10-2 certificates are backed by a partial credit guarantee of the Andean Development Corporation (CAF). The ground-breaking transaction marks the first time that either OPIC or CAF has provided a guarantee in the Mexican capital markets. The State of Mexico placed a high priority on structuring a domestic-only capital markets transaction that reflects international financial markets standards for transparency, accountability, credit risk and documentation. As a result, it was able to access a local capital market that had been largely dormant since the onset of the global financial crisis.

The PROIN 10 certificates are rated ‘mxAAA’, by Standard & Poor’s (S&P), and ‘AAA(mex)’ by Fitch Ratings (Fitch), in each case the highest possible designation for the debt market of Mexico. The PROIN 10-2 certificates are rated ‘mxAA’ by S&P and ‘AA(mex)’ by Fitch.

“LCA designed a financing solution that is innovative and tailor-made for the State of Mexico,” said Eugenio Mendoza, President of LCA. “The credit enhancement provided by OPIC and CAF, two strong institutions dedicated to promoting economic development, was central to the success of the transaction, which achieved long-term cost-effective funding in a challenging credit environment for one of the largest regional economies of Latin America.”

"We were confident we selected the right team for this complex financing. LCA met every challenge with dedication and professionalism," said Raul Murrieta, Secretary of Finance for the State of Mexico.

The certificates constitute obligations of PROIN and are repayable solely from future revenues of the public registry of properties of the State of Mexico (Instituto de la Funcion Registral del Estado de Mexico). The certificates are nonrecourse against PROIN and are not debt obligations of MBIA Inc. or any of its other subsidiaries.

LCA provides dedicated advisory services for asset valuation, transactional cash flow modeling, as well as structuring of credit and financing terms in Brazil, Chile, Colombia, Mexico and Peru. For more information, please visit our website at www.latamcapitaladvisors.com.

This news release relates to a completed offering of securities in Mexico, and does not constitute a public offering, nor solicitation or invitation to purchase securities.

Forward-Looking Statements

This release includes statements that are not historical or current facts and are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “believe,” “anticipate,” “project,” “plan,” “expect,” “intend,” “will likely result,” “looking forward” or “will continue,” and similar expressions identify forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those presently anticipated or projected. These risks and uncertainties could affect financial performance or could cause actual results to differ materially from estimates contained in or underlying MBIA Inc.’s or LCA’s forward-looking statements and are discussed under the “Risk Factors” section in MBIA Inc.’s most recent Annual Report on Form 10-K, which may be updated or amended in the MBIA Inc.’s subsequent filings with the Securities and Exchange Commission. MBIA Inc. and LCA caution readers not to place undue reliance on any such forward-looking statements, which speak only to their respective dates. MBIA Inc. and LCA undertake no obligation to publicly correct or update any forward-looking statement if it later becomes aware that such result is not likely to be achieved.

For LatAm Capital Advisors, Inc.
Media:
Kevin Brown, +1-914-765-3648
or
Elizabeth James, +1-914-765-3889
or
Investor Relations:
Eugenio Mendoza, +1-914-439-0178

Source: LatAm Capital Advisors, Inc.