Mexico in Brief
From Mexico in Brief Newsletter
GRUPO LALA ISSUES LOCAL BONDS IN MEXICO.
Grupo Lala, Mexican multinational dairy company, successfully issued a Peso-denominated bond, valued at approximately U.S.$70 million, in the Mexican Stock Exchange. The proceeds will be used to refinance part of the debt incurred in the last quarter of 2017 for the acquisition of Vigor Alimentos, S.A.
MEXICO PLACES SAMURAI BONDS IN JAPAN.
The Mexican Government placed a new historically-low cost “samurai bond” for approximately U.S.$1.2 billion. The transaction included 95 institutional investors, and the bond has maturities of five, seven, 10 and 20 years.
BIMBO TO INVEST MORE THAN U.S.$800 MILLION.
Grupo Bimbo, Mexico-based global bakery manufacturer, will invest approximately between U.S.$800 and U.S.$850 million in manufacturing, distribution, innovation and systems in 2018, in the 32 countries where the company has current presence. Additionally, Grupo Bimbo announced that it has priced its offering of U.S.$500 million Perpetual Subordinated Notes offering at par, to yield a 5.95% coupon.
GRUPO KUO TO REINFORCE INVESTMENTS IN MEXICO.
Mexican multi-business conglomerate, Grupo Kuo, will invest approximately U.S.$195 million during 2018 to reinforce the growth of its swine and automotive transmissions businesses in Mexico.
WALMART TO INVEST IN A NEW DISTRIBUTION CENTER IN MEXICO.
Walmart de Mexico and Central America will invest approximately U.S.$92 million in the construction of a new perishable distribution center in the Mexican State of Tabasco, which will allow the company to streamline its logistics processes, attract a greater number of local suppliers and boost investments in this State.
BOSCH TO BUILD A NEW FACILITY IN MEXICO.
Germany-based Bosch announced that it will invest approximately U.S.$120 million in the construction of its twelfth plant in Celaya, Guanajuato. The investment will be made to meet the rising demand of electronics components for the auto industry.
IENOVA TO BUILD A REFINED PRODUCTS TERMINAL IN MEXICO.
IEnova, Mexico-based energy company, will invest approximately U.S.$130 million in the construction of a marine terminal, which will be located some 50 miles south of the U.S.-Mexico border in the State of Baja California. The terminal will have a storage capacity of one million barrels of crude and is expected to begin operations during the second half of 2020.
AVANT ENERGY WILL CONTINUE INVESTING IN MEXICO.
Monterrey-based Avant Energy will double its original investment in Mexico to approximately U.S.$500 million. The investment will be destined to the construction of the terminal network for gasoline supply by train from the Altamira Port in the Mexican State of Tamaulipas to the Bajio region (Altamira-Bajio Petroleum Supply System, or SUPERA) which is scheduled to become operational before the end of 2019.
MEXICO AND THE EUROPEAN UNION REACH FREE TRADE PACT.
This April, Mexico and the EU reached an agreement on a new free trade deal with an updated Global Agreement, which will replace a 2000 agreement between the EU and Mexico. Practically all trade in goods between the EU and Mexico will now be duty-free, including in the agricultural sector. Simpler customs procedures will further benefit the EU’s industry, including sectors like pharmaceuticals, machinery and transportation equipment.