Bank Leads First Equity Offering by a Mexican Company in 2009

Transaction reaffirms Bank of America Merrill Lynch’s undisputed leadership in Mexico’s equity capital markets

Empresas ICA, S.A.B de C.V. (ICA), the leading construction and infrastructure company in Mexico, completed a U.S. $221 million common equity add-on offering (including the exercise of the over-allotment option), the first equity offering in Mexico in more than a year.

Bank of America Merrill Lynch acted as sole global coordinator on the highly anticipated transaction. Merrill Lynch also participated in Mexico’s last equity offering, a $233 million initial public offering (IPO) of Genomma Lab in June 2008.

With more than 60 years of experience, ICA has become the contractor of choice for major construction projects sponsored by the Mexican government and international partners.

In 2007, the Mexican government launched a National Infrastructure Program aimed at strengthening the infrastructure of the country.

“For a company like ICA, it was important to be well capitalized in order to take advantage of this government program and win new concessions,” said Laurent Massart, head of Investment Banking for Bank of America Merrill Lynch in Mexico.

The July common stock offering priced at $5.90 per American Depositary Share (ADS), and offered shares were placed 70 percent internationally and 30 percent in Mexico. This transaction demonstrates the strong interest from investors worldwide in the growing Mexican construction industry, bankers said.

This deal continues the strong relationship the bank has developed with ICA during the last decade; before this deal, Merrill Lynch had closed five successful transactions with ICA.

The transaction represents Bank of America Merrill Lynch’s strength in the Mexican market. “This was one of several deals the bank has announced in the last four to five months, and demonstrates the success of the merger and what our new firm is able to achieve,” Massart said.

According to Sebastien Chatel, head of Latin America Equity Capital Markets for Bank of America Merrill Lynch, “the successful completion of this deal, in this difficult market environment for Mexican issuers, is a testament to our broad distribution capabilities.”

After successfully integrating the two firms, the bank is preparing to strengthen its presence in Latin America and is focused on targeting the region’s largest companies with a full range of corporate and investment banking services, said James Quigley, president of Latin America and Canada.

“Bank of America Merrill Lynch is very focused on developing a strategy to grow and become dominant in the region in ways in which no one has succeeded so far,” Quigley said. “The bank has an appreciation for the consumer demographics in Latin America.”