Mexico in Brief
From Mexico in Brief Newsletter
NEMAK PLACED HISTORIC BOND IN THE GLOBAL MARKETS.
Mexican global automotive parts manufacturing company, Nemak, announced the placement of a U.S.$500 million bond issue in the international debt markets. Bearing a 4.75% coupon, it becomes the lowest coupon issuance from a Latin American company. The proceeds will enable Nemak to lower its financial costs and to extend the average life of its debt from 5.2 to 5.8 years, the company informed.
HOTELES CITY EXPRESS PLANS TO RAISE APPROXIMATELY U.S.$131 MILLION THROUGH NEW INVESTMENT TRUST VEHICLE.
Mexico-based chain of limited-service hotels, Hoteles City Express, announced the creation of a new Real Estate Investment Trust called Fibra STAY, which will consist of a portfolio of 42 owned hotels located in 27 Mexican cities. With Fibra STAY, Hoteles City Express, plans to raise approximately U.S.$131 million, which will strengthen its 2019-2022 development plan.
NEXXUS TO BUILD A REAL ESTATE DEVELOPMENT IN THE MEXICAN STATE OF NUEVO LEON.
Nexxus, Mexico-based corporate industrial developer, will invest approximately U.S.$370 million in the construction of its new mixed-use project called Proxximity in the Mexican State of Nuevo Leon, which will include 1,800 apartments, more than 30 thousand square meters of commercial area, two hotels and 13 movie theaters.
DAIWA HOUSE INDUSTRY TO INVEST IN MEXICO.
Japan-based Daiwa House Industry will invest approximately U.S.$200 million in real estate development projects in Mexico within the next four years, mainly in central Mexico in the the area known as the Bajio.
THE HOME DEPOT CONTINUES WITH ITS NON-STOP INVESTMENT PLAN IN MEXICO.
The home self-improvement store, The Home Depot, will invest approximately U.S.$91 million for its operations in Mexico during 2018. The investment will include the opening of up to three new stores, the maintenance and strengthening of the company’s online presence, which will allow purchases to be made from smart phones as well as desktop computers, with a quick response time.
CONSTELLATION BRANDS AND OWENS-ILLINOIS TO EXPAND BEER BOTTLE PLANT IN MEXICO.
Beverage alcohol company, Constellation Brands and glass company, Owens-Illinois have announced that they will jointly invest approximately U.S.$140 million in the expansion of their beer bottle plant in the Mexican State of Coahuila, which will become the world’s largest and most modern glass container factory. The most notable products made at this brewery are Corona, Negra Modelo and Modelo Especial, under license from Grupo Modelo.
U.S.$1 BILLION INVESTMENT FORECAST FOR MEXICAN MINES IN 2018.
The Mining Chamber of Mexico, or Camimex, forecasts approximately U.S.$1 billion to be invested during 2018 in ten new projects, mostly gold and silver mines, in the Mexican States of Zacatecas, Sonora, Durango and Guerrero, which will allow Mexico to remain among the leading gold producers in the world.
JAPAN-BASED, MITSUI, TO COMPLETE COKING PLANT IN MEXICO.
Mexican State oil company, Pemex, has chosen Japanese conglomerate Mitsui as its partner for a U.S.$2.6 billion coking plant project at its Tula refinery, which will be completed by 2021 and will increase the refinery’s gasoline output by 40 percent by allowing for the processing of fuel oil.
MEXICAN STATE OF YUCATAN TO INVEST IN WIND FARMS.
The southern Mexican State of Yucatan announced the investment of approximately U.S.$550 million in the first half of 2018 for the construction of three wind farms in the state. The
wind farms will be located in the cities of Dzilam de Bravo and Tizimin and will generate more than 50 MW of clean energy.
MEXICO CALLS FOR BIDS FOR NEW ROUND OF ONSHORE BLOCKS.
Mexico’s National Hydrocarbons Commission or CNH has issued a call for bids for the 37 onshore blocks that will be tendered in the second phase of Mexico’s Round 3 oil bidding process. The process will be held in July of 2018 and will offer 21 blocks in the Burgos Basin in northern Mexico, nine in the Tampico-Misantla-Veracruz Basin and seven in the Sureste Basins. Each block will be developed through 30-year license agreements and will require an average investment outlay of approximately U.S.$89 million per block.
SUCCESSFUL FOURTH PHASE OF MEXICO’S ROUND TWO OIL AUCTION SECURES CLOSE TO U.S.$100 BILLION INVESTMENT.
The Mexican National Hydrocarbons Commission (CNH) held the fourth phase of the second round of Mexico’s oil auctions, exceeding the Energy Ministry’s expectations by successfully awarding 19 out of the 29 available oil-focused offshore blocks. British-Dutch Shell emerged as the big winner of the auction, winning nine blocks in the Perdido Fold Belt and the Cuenca Salina basins in the deepwater Gulf of Mexico, four as a sole bidder, four more in a consortium with Qatar’s Qatar Petroleum and another with Mexico’s national oil company Pemex. Also a big winner, PC Carigali, a subsidiary of Malaysia’s Petronas, was awarded six block, four in consortia and two as a sole bidder. Other winners of blocks of this auction included Spain’s Repsol, UK-based Ophir Energy, Thailand’s PTTEP, US-based Chevron, Japan’s Inpex Corp, Italy’s Eni and Mexico’s Sierra Oil & Gas. In total, bidders committed to drilling twenty-three exploration wells and approximately U.S.$525 million were committed in cash bonus payments. Investment in these 19 blocks could be as much as approximately U.S.$93 billion if exploration is successful.