Mexico in Brief

Mexico in Brief, our monthly newsletter, is available in this section. Our Mexico in Brief summarizes the most relevant business news in Mexico, and also lists the main Mexican economic indicators. Our file is organized by issue number and issue date. Please consult it at your convenience and send us any comments through the link appearing below, or emailing us at mexico.in.brief@jatabogados.com.

From Mexico in Brief Newsletter

  • REPSOL DISCOVERS MILLIONAIRE OIL RESERVE IN THE MEXICAN COAST.

    Spanish oil company Repsol has made two important findings in the deep waters of the Gulf of Mexico. The discoveries are part of the Polok-1 and Chinwol-1 welling areas, which correspond to the block 29 of the Salina basin. Repsol disclosed that the two discoveries have great potential, and are expected to represent a combined investment of approximately U.S.$100 million.

  • ALPHACREDIT CLOSES MILLIONARE INVESTMENT WITH SOFTBANK.

    AlphaCredit, a Mexican fintech catering to underserved demographics, was recently funded by SoftBank. The investment will be channeled through Series B shares, which have now been approved by the Mexican antitrust authorities, and was announced to amount to approximately U.S.$100 million.

  • THE PORT OF TUXPAN EXPANDS TO QUADRUPLE CARBON STORAGE.

    The Mexican Federal Government confirmed the investment of approximately U.S.$930 million by the private sector in the expansion of the port of Tuxpan, in the Mexican state of Veracruz, seeking to nearly quadruple its carbon storage capacity. The expansion follows the port’s previously announced U.S.$762 million expansion. Port operations have not been suspended in Mexico due to the COVID-19 pandemic, as Mexico considers them as essential.

  • NADB INSTITUTION INVESTS FOR THE SUPPORT IN ENVIRONMENTAL PROJECTS.

    The U.S. & Mexico sponsored North American Development Bank (NADB) has approved a financial program of up to U.S.$200 million for environmental projects along the U.S.-Mexico border. The program seeks to reduce the effects of the COVID-19 pandemic in the border area, and includes approximately U.S.$15 million in technical assistance within the next two years. NABD also recently granted an approximately U.S.$7 million financing for a residual water treatment plant in the of Mexicali in the State of Baja California.

  • AMX PLACED BILLIONAIRE BONDS IN THE NYSE.

    Mexican multinational telecommunications & technology giant America Movil will place approximately U.S.$1 billion in bonds with 10-year maturity in the New York Stock Exchange. The bonds will have a 2.875 coupon, and will be payable starting this year 2020 and in six month installments, through their due date in 2030. Bank of America & JP Morgan serves as placement agents. The proceeds will be used for general corporate purposes.

  • MEXICO LAUNCHES DIGITAL CAMPAIGN TO REACTIVATE TOURISM.

    The Mexican Federal Government has presented a digital campaign, through its platform Visit Mexico for the reactivation of the touristic industry; its execution will be divided on three phases and will be in conjuncture with the Mexican Communication Counsel. The Mexican Communication Counsel announced that it will fund this project with approximately U.S.$13 million in advertisement expenses.

  • PHASE 2 & 3 FOR MAYAN TRAIN HAVE BEEN AWARDED.

    The Mexican Maya Train Project awarded the contracts for the construction of Phases 2 & 3. Phase 2 will be led by the consortium led by Operadora Cicsa and the Spanish Construction Company FFC, with a proposal having an aggregate value of approximately U.S.$830 million, involving 222 kilometers of construction. Phase 3 was awarded to the consortium led by the Spanish Company Azvi, with a proposal having an aggregate value of approximately U.S.$425 million, involving 172 kilometers of construction.

  • MEXICO’S RENEWABLE ENERGY PLAYERS CHALLENGE NEW RULES.

    Following the turmoil caused by the Resolutions issued by the Mexican National Center for the Control of Energy or CENACE in late April 2020, and by the Mexican Ministry of Energy or SENER in mid-May 2020 (both issued alleging the preservation of the national grid’s efficiency and reliability), at least twenty-three amparo constitutional protection lawsuits have been filed by the affected private companies, and the Mexican Federal courts have granted definitive suspension orders with respect to CENACE’s Resolution to several complainants, which will allow these projects to continue while the amparo proceeding is finally resolved. Similar in nature to the CENACE Resolution but significantly broader in its reach as public policy, it is expected that the SENER Resolution will be equally challenged by multiple affected parties in coming days and shall come under Mexican Federal court’s scrutiny. To read our key takeaways and implications of these Resolutions, please click here.