Mexico in Brief
From Mexico in Brief Newsletter
NEW TRUST STOCK CERTIFICATES PLACED IN THE MEXICAN STOCK MARKET.
Arago Gestion, a recently-formed variable-capital private equity firm or SAPI has recently placed approximately U.S.$150 million in the Mexican stock market through the issuance of new trust stock certificates known as CerPis. With this placement, Arago Gestion aims to take part in new projects and maximize its profits.
AUTO MANUFACTURERS REGAINING PRODUCTION VOLUMES.
One month after the restart of activities in the automobile manufacturing sector in Mexico, auto manufacturing companies are starting to get back on track on their usual production volumes. In June 238,946 car units were assembled, just 29% less than last year. Some manufacturers, such as Mazda and BMW have reported to have even slightly higher production volumes compared to the same period of last year.
APPROVES TRUST FUND AND GAINS FINANCIAL INDEPENDENCE.
The Mexican Federal Electricity
Commission or CFE has approved the
creation of a new trust fund that will allow CFE proper financing for new construction
projects. CFE informed that this trust fund would grant CFE greater financial
independence and would make the construction of five new power plants possible,
as well as acquiring of strategic power plants for their operations.
INTERJET RECEIVES CAPITAL INJECTION.
Mexico’s third-largest airline Interjet has received a capital increase of approximately U.S.$150 million through an investment fund. The new funding is expected to strengthen the company’s operations and better face the current struggles of lower demands and travel suspensions due to current COVID-19 pandemic.
FIBRA UNO DEBT OFFER IS OVER-DEMANDED.
The Mexican Stock Exchange recently announced that real estate trust fund Fibra Uno has successfully placed bonds for approximately U.S.$650 million in the international markets, far exceeding their initial goal of raising U.S.$500 million. Of the total placement, U.S.$275 million have a 6.25% coupon with a 30-year maturity and U.S.$375 million have a 4.95% coupon and a 10-year maturity.
PLACEMENT OF TRUST TOCK CERTIFICATES BY FIBRA SITES.
The Mexican-based trust fund for infrastructure and real estate Fibra Sites has recently placed trust stock and real estate certificates or CBFIs for approximately U.S.$536 million. This placement aims to fund the development of a better infrastructure for the operation of its 6,500 telecommunication towers across all of Mexico.
COX ENERGY GETS LISTED IN THE MEXICAN STOCK EXCHANGE.
Spanish-based renewable energy company Cox Energy has placed 15% of its shares through the Institutional Stock Market or BIVA. Cox Energy is the first renewable energy company to get listed in the Mexican stock market and raised approximately U.S.$21 million from the public investors, and an additional of approximately U.S.$14 million from the company’s private shareholders and family offices, obtaining a total funding of approximately U.S.$35 million.
FIRST INVESTMENT IN MEXICO UNDER T-MEC TREATY.
The first investment in Mexico under the new USMCA rules was made by Canada-based car manufacturer Bombardier Recreational Products or BRP, which announced an increase in the capacity in its new manufacturing plant in Mexico. This new plant is located in Ciudad Juarez, in the state of Chihuahua, involves an investment of approximately U.S.$136 million and will create at least 1,000 new permanent job positions.
FEMSA PLACES SENIOR NOTES.
Mexico-based conglomerate Fomento Economico Mexicano or FEMSA recently placed senior notes for approximately U.S.$700 million with a 30 year maturity, reaching total placements this year for approximately U.S.$2.5 billion.