Mexico in Brief
From Mexico in Brief Newsletter
DIRECT FOREIGN INVESTMENT IN MEXICO KEEPS ITS PACE.
During the first half of 2020 Mexico has received approximately U.S.$18 billion in foreign direct investments. Despite the current COVID-19 pandemic, FDI in Mexico hast dropped only 0.7%, compared to last year’s first semester figure.
CEMEX CLOSES SALE OF ASSETS.
Mexico-based building solutions giant Cemex has recently closed a sale of assets with British-based cement producer Breedon Group involving consideration of approximately U.S.$230 million. Cemex announced to the Mexican Stock Exchange that these assets generated approximately U.S.$29 million in cash flow to the company, and stated that the proceeds will be used for reduction of debt and general corporate purposes.
SIX NEW EXPLORATION PROJECTS FOR PEMEX.
The Mexican National Hydrocarbons Commission, or CNH, has approved six new exploration plans of Pemex, reaching a total of 46 approved exploration plan, involving a total investment of approximately U.S.$7 billion. The approved explorations are located near in the states of Tabasco and Campeche, Mexico, in the southeast basin.
SHELL COMPANY MAKES INVESTMENT IN MEXICAN OIL WELL.
U.K.-based gas & oil company Shell has recently invested approximately U.S.$36 million in the deep waters of Chimmalli-1Exp welling area. The oil well is located in the coast of the state of Tamaulipas, Mexico. This oil well is expected to yield approximately 238 million barrels of crude oil.
PLACEMENT OF DEBT BONDS BY LIVERPOOL.
Mexico-based retailer & department store Liverpool has received approximately U.S.$228 million from the placement of debt bonds with an 8.03% coupon and a 10-year maturity. With this placement, Liverpool aims to take preemptive measures to maintain its cash flow during the current pandemic.
PEMEX MAKES DEEP WATER EXPLORATION NEAR THE COAST OF VERACRUZ.
Mexican state-owned oil company Petroleos Mexicanos or Pemex has announced an investment of up to approximately U.S.$138 million in deep water exploration works in the AE-0172-Holok, AE-0173-Holok and, AE-0174-Holok welling areas. These areas are located near the coast of the state of Veracruz, Mexico.
PLACEMENT OF UNSECURED GLOBAL BONDS BY COCA-COLA FEMSA.
Mexican-based conglomerate Coca-Cola FEMSA or KOF recently placed unsecured global bonds for approximately U.S.$500 million with a 12-year maturity. This placement will add to the previous placement of approximately U.S.$485 million by KOF in short term financing during the current COVID-19 pandemic.
METAL INDUSTRY MAKES MILLIONAIRE INVESTMENT IN NUEVO LEON.
Mexico-based metal industry Arzyz Metals has recently invested approximately U.S.$250 million in the construction of a new manufacturing plant in the state of Nuevo Leon, Mexico. This new production plant will concentrate its operations and triple its current production volumes. With the new plant, Arzyz Metals plans to sell approximately 240 thousand tons of aluminum a year to the medical and automobile parts’ sectors.