Mexico in Brief
From Mexico in Brief Newsletter
CFE MAKES BILLIONAIRE INVESTMENT IN SIX NEW POWER PLANTS.
The Mexican Federal Electricity Commission or CFE recently announced an investment of approximately U.S.$3.1 billion for the development of six new combined cycle power plants, and five wind power generators. This investment will focus on fixing the power shortages across Mexico and will generate approximately 30,000 new jobs.
SEMPRA ENERGY TO BUY OUT MEXICAN CONSTRUCTION COMPANY.
U.S.-based energy company Sempra Energy recently announced that it will acquire the remaining stake of Mexico-based construction company IEnova for an approximate consideration of U.S.$5.8 billion. Sempra Energy is targeting increasing its investments in renewables and energy storage for increasing cleaner fuels.
FIBRA PROLOGIS ISSUES GREEN BOND.
Mexico-based real estate investment trust (REIT, or “Fibra”), Fibra Prologis, has recently issued a green bond worth approximately U.S.$375 million, becoming the first REIT to place a green bond in the Mexican Stock Exchange. This bond has a maturity of 12 years, and the proceeds will be used for investments in green projects and facilities.
CFE SUBSIDIARY INVESTS IN INTERNET CONNECTIVITY.
The State-owned subsidiary company of CFE, CFE Telecomunicaciones e Internet Para Todos, is contemplating an investment of approximately U.S.$550 million within the next three years, seeking to enable approximately 200,000 hotspots for free internet access, jointly with internet services increased bandwidth throughout 130,000 communities across Mexico.
VOLARIS PLACES CPOs.
Mexico-based airline Volaris recently made a CPO placement, receiving approximately U.S.$165 million in proceeds. This placement aims to strengthen the company’s position in the U.S. and Central American markets, in the midst of the current pandemic.
BIMBO OPENS NEW DISTRIBUTION CENTER.
Mexico-based baking giant Grupo Bimbo has recently opened a new distribution center in Mexico City, which involved an investment of approximately U.S.$136 million. This center will distribute to convenience stores in the center & south of Mexico and will generate approximately 300 new jobs.
MEXICO RECEIVES BILLIONAIRE PAYOUT ON OIL HEDGE.
The Mexican government recently announced that Mexico will cash-in on its 2020 sovereign oil hedge, receiving a payout of approximately U.S.$2.5 billion.
LARGEST SHIPYARD IN LATIN AMERICA TO BE BUILT IN YUCATAN.
Italian-based shipbuilding company Fincantieri recently announced an agreement with the Mexican government of the state of Yucatan to build Latin America’s biggest shipyard within the State. The investment will reach approximately U.S.$400 million, and the shipyard will be used for repairing and/or constructing vessels; it will start operations in 2024.
MEXICAN GOVERNMENT ANNOUNCES SIGNIFICANT INFRASTRUCTURE PACKAGE.
The Mexican Finance Ministry recently announced a second investment package for 29 different infrastructure projects to be developed jointly between the private sector and the government, having an approximate value of U.S.$11.4 billion. The investments are aimed to restart the Mexican economy and could create approximately 400,000 new job positions.