Mexico in Brief
From Mexico in Brief Newsletter
CONTINUED ACTIVITY IN THE MEXICAN STOCK EXCHANGE; MORE TO COME.
Major public offerings by Mexican companies continue, in what has been a very active year for the Mexican Stock Exchange, or BMV – in anticipation to an expected politically-driven 2018. Grupo Traxion debuted in the BMV, raising approximately U.S.$330 million. Furthermore, BCM CKD Management placed Capital Development Certificates for approximately U.S.$222 million in the BMV.
GACM BOND ISSUE RAISED U.S.$4 BILLION TO BUILD NEW CDMX AIRPORT.
Grupo Aeropuertario de la Ciudad de Mexico, or GACM, raised approximately U.S.$4 billion by means of two green bonds, which can only be used in sustainable projects. The issuance was widely accepted and attracted the participation of more than 750 investors from around the world, and consists of a bond for approximately U.S.$1 billion with a 10-year maturity yielding a rate of 3.87%, and a second bond for U.S.$3 billion with a 30-year maturity, yielding a rate of 5.50%.
GRUPO MEXICO PREPARES OCTOBER IPO OF ITS RAIL UNIT.
Mexican mining conglomerate Grupo Mexico prepares the public listing of its transportation division, including its Ferromex railroad operator, on Mexico’s stock exchange. The company expects to raise approximately U.S.$1 billion from the placement this October. Grupo Mexico hired Credit Suisse and BBVA Bancomer as financial intermediaries, who will lead the IPO of the Ferromex shares.
UNIFIN ISSUES FIDUCIARY STOCK CERTIFICATES.
Unifin Financiera, or Unifin, announced two issuances of fiduciary certificates for approximately U.S.$195 million, which makes this transaction the largest securitization of a lease in Mexico. The certificates will yield 9% with a five year maturity.
MEXICO’S FEMSA SELLS 5.24% OF HEINEKEN.
Mexico-based bottler Fomento Economico Mexicano, or Femsa, unveiled that it has sold a stake of 5.24% in Heineken for approximately U.S.$2.9 billion, reducing Femsa’s holding in Heineken NV to 8.63%, and its stake in Heineken Holding to 12.26%.
ARCA CONTINENTAL ACQUIRES A COCA-COLA BOTTLER.
Mexico-based Arca Continental, one of the largest and most important bottler of The Coca-Cola Company in Latin America, announced the acquisition of the totality of the shares of Oklahoma-based Great Plains Coca-Cola Bottling Company for approximately U.S.$215 million.
SHELL BEGINS ITS RETAIL INVESTMENT PLAN IN MEXICO.
After the company opened its first service station in Mexico early last month, Royal Dutch Shell, the British–Dutch multinational oil and gas company, announced its plan to invest approximately U.S.$1 billion in a retail-based expansion plan in Mexico over the next 10 years.
CFENERGIA WILL SUPPLY IBERDROLA IN MEXICO.
CFEnergia has signed a 24-year contract with Spain-based Iberdrola to supply natural gas to their 866 MW power plant now under construction in the Mexican State of Nuevo Leon, having a value of approximately U.S.$4 billion. Additionally, CFEnergia will sell natural gas to Arcelor Mittal, in a transaction with an expected value of approximately U.S.$240 million.
CNOOC LTD. IN SEARCH OF PARTNERS FOR DEEP WATER EXPLORATION IN MEXICO.
China-based Cnooc Ltd. is searching partners to invest in its deep-water project in Mexico after the company was awarded the rights to develop two deep-water areas in the Gulf of Mexico. This area is one of the deepest exploration areas in the world, and it is where Mexico estimates the bulk of its untapped oil potential is located.
IN THE AFTERMATH OF THE MEXICAN EARTHQUAKES, MEXICANS DISPLAY WORLD-ADMIRED SOLIDARITY.
Following the devastating earthquakes affecting Central and South Mexico in the past weeks – resulting in over 330 deaths and billions of Dollars in damages – the solidary response of the Mexican population was second to none. The efforts of the Mexican population grew stronger as the effects of the tragedy started to appear, and did not give up despite the adversity of the situation. Our hearts go to all Mexican and Foreign rescuers and volunteers that contributed to the rescue efforts, and to the reconstruction to come. Mexico showed the world its strength, and the strength of its people.