Mexico in Brief
From Mexico in Brief Newsletter
CFE ISSUES DEBT FOR U.S.$526 MILLION.
Mexico-based Comision Federal de Electricidad, or CFE, issued debt for approximately U.S.$526.4 million. CFE´s issuance was made in three tranches, one of them with a three-year term and a floating rate, one with a 10-year fixed rate in Mexican Pesos, and a third one with a 15-year fixed rate in UDIS (the index unit of funds used in Mexico).
FIBRA UNO RAISES CAPITAL THROUGH REAL STATE TRUST CERTIFICATES (CBFIS).
Mexico-based Real Estate Investment Trust, Fibra Uno, raised approximately U.S.$711 million through a global IPO of real estate trust certificates, or CBFIS, which will be used to complete the purchases already announced in 2016 for the Apolo II, Turbo and Frimax portfolios.
ARCELORMITTAL TO INVEST U.S.$1 BILLION IN MEXICO.
ArcelorMittal, Luxembourg-based global steel manufacturing company, will invest approximately U.S.$1 billion in Mexico in the next three years to boost its North American trade operations and to meet Mexican demand for steel products, which is growing rapidly according to the company´s chairman and chief executive, Lakshmi Mittal.
IENOVA BUYS PEMEX PARTICIPATION IN MEXICO.
IEnova, a subsidiary of Sempra Energy, acquired Pemex´s participation in Ductos Energeticos del Norte for approximately U.S.$231 million, increasing IEnova´s participation in the “Los Ramones II Norte” pipeline to 50 percent.
IBERDROLA WILL CONTINUE TO INVEST IN MEXICO TOWARDS 2020.
Spain-based public multinational electric utility company, Iberdrola, will invest approximately U.S.$1.7 billion between 2017 and 2020 in the construction of six electric co-generation plants in Mexico. By 2020, Iberdrola is expected to have a 75-terawatt capacity in Mexico, exceeded that in Spain, its country of origin.
ENEL SELLS MEXICAN STAKE IN RENEWABLE PLANTS AND PREPARES MAJOR INVESTSMENT IN MEXICO.
Italy-based multinational manufacturer and distributor of electricity and gas, Enel, sold an 80 percent stake of a portfolio of eight wind and solar assets to the Canada-based institutional investor, Caisse de dépôt et placement du Québec, for approximately U.S.$1.5 billion. Additionally, Enel announced that it will invest, in the next two years, approximately U.S.$1.4 billion in Mexico, seeking to position itself among the three main qualified suppliers in the short term.
MEXICO’S “ROUND 3” FOR OIL AND GAS BIDDING IS OFFICIALLY LAUNCHED.
Mexico’s National Hydrocarbons Commission or CNH has issued a call for bids for the 35 blocks of shallow water areas that will be tendered in the first phase of Mexico’s Round 3. The 35 blocks, located in the “Burgos” basin, “Tampico-Misantla-Veracruz” area and “Cuencas del Sureste” basin have approximately 1.988 MMbo of prospective resources and will be developed through production sharing agreements. By estimates of the Mexican Ministry of Energy, if at least 10 blocks of the 35 that will be tendered in Round 3.1 are awarded, investments of no less than U.S.$3.8 billion would be expected.
FOREIGN COMPANIES WIN BIDS TO DEVELOP ONSHORE AREAS IN MEXICO.
India-based oil company Cheiron Holdings and Germany-based oil and gas company DEA Deutsch Erdoel, were awarded the bids to develop two onshore areas, one in the “Cardenas-Mora” field and the other one in the onshore “Ogarrio” area. Both projects will be developed jointly with Pemex, which is Mexico’s state-owned oil firm.