The Tribasa Toll Road Trust Harvard Case Solution & Analysis

The Tribasa Toll Road Trust Case Solution

This case illustrates how the international capital markets were used to get funding for the growth of limited access highways in Mexico. From the perspective of the patron, the deal provided a means to remove indebtedness from its balance sheet while keeping control of the assets. Investors bought high-return securities supported by two toll roads with an operating history (and no building hazard). The radical devaluation of the peso in December 1994 offers a chance to contemplate the skill of the Trust to continue to support the currencyand doubled the obligation in US dollars.

This case enables students to concentrate on the funding of private infrastructure investments through the capital markets. It's designed to educate pupils about the dangers that are standard in cross border project financing arrangements, where lenders have restricted or no recourse to the project sponsors. Pupils can view how special provisions trap sales in the Trust and protect the interests of investors by looking at the funding construction formulated for this trade.

This is just an excerpt. This case is about  FINANCE & ACCOUNTING

PUBLICATION DATE: December 01, 1998

 

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