Mexico in Brief
From Mexico in Brief Newsletter
ENERMEX TO BUILD STORAGE TERMINALS.
Mexican company Enermex will invest approximately U.S.$500 million in the construction of five storage terminals of gas, diesel and crude oil located in the Mexican States of Jalisco, Oaxaca, Veracruz, Tabasco and Mexico. The terminals could be used by State-owned Pemex or by private companies, and will be added to the ten terminal that are currently leased by Enermex around the country.
DEIMOS ANNOUNCED INVESTMENTS IN YUCATAN.
Spanish company Deimos Grupo Elecnor recently announced an investment of U.S.$130 million for the construction of a technological center in the Mexican State of Yucatan that will be destined to satellite and aerospace matters. The investment will generate around 600 indirect jobs during the first stage of construction. Additionally, the company will invest approximately U.S.$700 million for the installation of two wind power plants also in Yucatan, generating around 1,000 new jobs in the area.
VENTURE CAPITAL FIRMS ARE BOOSTING MEXICAN FINTECHS.
Latin-American venture capital firm Kaszek Ventures informed it will invest around U.S.$600 million in Mexican technological startups, of which more than 60% is destined to companies in their early stages. Kaszek Ventures has invested in Fintech company Konfío, who also recently obtained two credit lines for a total amount of U.S.$250 million from Goldman Sachs Group and Victory Park Capital Advisors, allowing it to finance small and medium-sized enterprises. Mexican Fintech Credijusto has also recently received U.S.$42 million from Goldman Sachs, and has received investments from Kaszek Ventures and other venture capital firms that will enable the company to continue supporting SMEs.
GAP TO MAKE BILLIONAIRE UPDATE TO ITS INFRASTRUCTURE.
Mexican airport operator Grupo Aeroportuario del Pacifico, or GAP, announced an investment of approximately U.S.$1.02 billion within the next five years for the construction of new infrastructure and for maintenance services to its current one. GAP is estimating an increase of 4% or 5% in passenger traffic in the 2020-2024 period, and this investment will help provide better services to the increasing air traffic.
NISSAN WILL MANUFACTURE NEW VEHICLE IN MEXICO.
Nissan Mexicana, a subsidiary of Japanese car manufacturer Nissan, will invest approximately U.S.$278 million in the production of a new vehicle in its plant of Aguascalientes in Mexico. A director of the company announced this is part of their Nissan Intelligence Mobility strategy, and reiterated their intention to remain as the number one best-selling brand in the country. The continuous growth in the number of auto-parts manufacturer plants in the Mexican Bajio region allowed Nissan Mexicana to have a base of 230 suppliers, which places them above the rule of origin rule in the new USMCA.
MEXICAN COMPANIES ISSUING BONDS AND SHARES.
Several Mexican companies issued international bonds during the past month with the purpose of refinancing their debts and liquidating or refinancing previous bonds and certificates. State-owned Pemex issued a total of U.S.$7.5 billion in bonds maturing in 7, 10 and 30 years, baking giant Bimbo issued bonds for U.S.$600 million maturing in 2049, mining company Industrias Peñoles made its first issue for a total of U.S.$1.1 billion in bonds maturing in 10 and 30 years, and manufacturing company Alpek issued a bond for U.S.$500 million with a 10-year maturity. Issuing activity will most surely continue next month, when the shareholders of Cemex Filipinas, a subsidiary of Mexican building products manufacturing giant Cemex, will vote on the issue of shares for U.S.$250 million to improve its capital structure and finance the current expansion of its solid cement plant in the city of Antipolo.
FEMSA ANNOUNCED BILLIONAIRE INVESTMENT.
Mexican bottler Fomento Economico Mexicano, or Femsa, recently announced its plans to invest approximately U.S.$3.12 billion in Mexico within the next three years. The investment will generate roughly 41,000 direct jobs in such period of time and is referred to all of the company’s operations in the country. Femsa has operations across Latin America as well, and it runs the world’s largest Coca-Cola bottler and Oxxo’s convenience stores.
NETFLIX TO GENERATE MORE MEXICAN CONTENT.
Netflix, U.S-.based streaming services provider, announced it will be investing approximately U.S.$200 million next year in Mexico to generate content, new series and films. Although the company has been investing in other countries as well, Netflix’ director of the Latin American division assured the company is particularly interested in Mexico to generate content that will be seen worldwide by all of the platform’s users.
ENERGY AUCTION HAS BEEN REACTIVATED.
The Mexican government has reactivated a clean energy auction which had been delayed on December 2018 due to a saturated transmission line that generated an electric imbalance. An auction for 200 megawatts will be launched in the Mexican State of Aguascalientes, and the government will review other regions in which energy is needed so developers can submit their proposals.
NATURAL GAS PIPELINES ARE OPEN FOR BUSINESS.
The Texas-Tuxpan pipeline transporting natural gas has begun operations, leading the way to investments of nearly U.S.$18 billion in the short term. The pipeline could receive around 2.6 billion cubic feet of natural gas per day for a daily consumption of 7.5 billion in the country. Six other pipelines have started operations following the agreement reached by the Mexican government with the pipeline operators in August.