Mexico in Brief
From Mexico in Brief Newsletter
TOYOTA INCREASES PRODUCTION VOLUMES IN GUANAJUATO.
Japan-based car manufacturer Toyota has announced an investment of approximately U.S.$170 million to expand its production plant located in the city of Guanajuato, Mexico. This expansion will increase its production capacity from 100 thousand to 138 thousand car units per year, and will generate 500 new job positions, focusing on exports to the United States of America.
COCA-COLA FEMSA PLACES LARGEST GREEN BOND IN LATIN AMERICA.
Mexico-based conglomerate Coca-Cola FEMSA or KOF recently placed a green bond for approximately U.S.$705 million with a 1.85% coupon and a 12-year maturity, the largest green bond placement in history for a Latin American company. KOF stated that they will allocate these resources for financing projects in areas related to climate change, water care, and circular economy.
MILLIONAIRE PLACEMENT IN SENIOR NOTES.
Mexico-based energy industry Infraestructura Energetica Nova or IEnova has recently placed senior notes for approximately U.S.$800 million, with a 4.75% coupon and a 31-year maturity. IEnova plans to use the proceeds for general corporate purposes, including refinancing of debt.
SUSTAINABLE TOURISM IN MEXICO RECIEVES MILLIONAIRE FINANCING.
The International Finance Corporation or IFC, and Spanish-based Sabadell bank, have granted an approximately U.S.$100 million financing to sustainable hotels located in the Rivera Maya and Puerto Vallarta. This financing aims to support sustainable tourism during the current COVID-19 pandemic.
CEMEX COMPLETES BILLIONAIRE PLACEMENT OF SENIOR NOTES.
Mexico-based building solutions giant Cemex has recently announced a placement of senior notes worth approximately U.S.$1 billion, with a 5.2% coupon and a 10-year maturity. Cemex announced that it intends to use proceeds for general corporate purposes, including payment of debt.
AEROMEXICO RECIEVES FUNDS AND INCREASES OPERATIONS.
Mexico-based airline Aeromexico has recently received approximately U.S.$100 million for the restructuring plan of approximately U.S.$1 billion agreed with Apollo, a the U.S.-based capital fund. With this, Aeromexico aims to improve its liquidity and continue complying with its corporate obligations. Also as part of the plan, Aeromexico will increase its operations, expecting to reach approximately four times more flights in October, compared to May of this year.
MEXICAN PRIVATE INVESTORS READY FOR MAJOR INVESTMENT IN THE ENERGY SECTOR.
The Mexican Consejo Coordinador Empresarial has recently announced that the energetic sector has potential investments for approximately U.S.$93 billion spread across 279 different projects, 74 projects in hydrocarbons, 48 in gas, and 157 in the electric sector, the last one having projects in both solar and wind power. The CCE has announced that it has reached a significant investment agreement with the Mexican Federal Government, expected to cover some of these projects, and to be announced shortly.
MEXICO PLACES BONDS LINKED WITH SUSTAINABILITY GOALS.
Mexico has recently placed the world’s first sovereign bond linked to sustainability goals set by the United Nations, for approximately U.S.$890 million with a 1.35% coupon and a 7-year maturity. This bond was oversubscribed more than six times, and is part of an emerging trend to tackle social, environmental and, other significant global issues.
STANLEY BLACK & DECKER STARTS OPERATIONS IN NUEVO LEON.
U.S.-based manufacturer of industrial tools and household hardware, Stanley Black & Decker, has recently made an investment of approximately U.S.$40 million to start operations of its new production plant located in the city of Apodaca, in the state of Nuevo Leon. Stanley Black & Decker announced that this plant will generate 2,500 new jobs by the end of 2021.