Mexico in Brief
From Mexico in Brief Newsletter
WTTC BILLIONAIRE INVESTMENT.
World-wide tourism companies that make up the World Travel and Tourism Council (WTTC) announced an investment of approximately U.S.$2.5 billion in tourism projects in Mexico for the following years. According to the WTTC, the investment will be distributed among the following Mexican states: Quintana Roo, with approximately U.S.$1.6 billion dollars; Baja California Sur with approximately U.S.$255 million; approximately U.S.$7.5 million dollars in Yucatan; approximately U.S.$252 million in Jalisco; and approximately U.S.$7 million dollars in other entities of the country. Such investment is also expected to create approximately 100,000 new job positions.
MILLIONAIRE BONDS PLACED IN MEXICAN STOCK MARKET.
Mexican multinational beverage and retail company, Fomento Economico Mexicano (Femsa, for its acronym in Spanish) confirmed the issuance of two bonds for a total amount of approximately U.S.$1.4 billion, which will be placed for a term of seven and twelve years. One issue will be for approximately U.S.$845 million with a term of 7 years, and the other will be for approximately U.S.$603 million with a term of 12 years.
NORWEGIAN INVESTMENT IN AGRICULTURAL PRODUCTIVITY.
Norway-based chemical company Yara invested more than approximately U.S.$14 million in the construction of a plant for the physical mixing of fertilizers in the Northeastern Mexican state of Tamaulipas, adding to a total of 5 plants along the country. The main objectives of the plant are to help to sustainably increase the agricultural productivity of the Mexican countryside. With this new plant, Yara Mexico can reinforce its offer of mineral fertilizers that will help increase the productivity, quality, and profitability of crops.
NUBANK REAFFIRMS ITS COMMITMENT TO MEXICO.
After one year of starting operations in Mexico and placing itself among the five largest issuers of new credit cards in the country, the Latin American digital bank Nu México will invest approximately U.S.$135 million in the country, aiming to boost its growth and accelerating the consolidation of its operation. Globally, in January 2021, Nubank raised approximately U.S.$400 million as part of its Series G issuance, whose main objective was to promote international expansion in Colombia and Mexico. To revolutionize the financial service industry, approximately U.S.$70 million will be invested by Nubank in 2021 in its operations in Mexico, as well as approximately U.S.$65 million financed by JP Morgan, Goldman Sachs, and Bank of America.
BILLIONAIRE INVESTMENT FOR E-COMMERCE.
Due to the pandemic’s online shopping boom, the Argentine e-commerce firm, Mercado Libre, will invest approximately U.S.$1.1 billion to expand its storage and services facilities in Mexico. The investment will help Mercado Libre double its storage space and boost financial technology. The company has constantly increased its delivery network in the country, recently opening a fourth distribution center in the northern Mexican state of Nuevo Leon. This growth has also led to a rebound in the company’s stock prices, which more than doubled in the past year and reached a record market value in January of approximately U.S.$4.9 billion.
A BILLION DOLLAR MERGER.
The leading media companies in the Spanish-speaking world, Grupo Televisa and Univision, announced a merger for the creation of a joint streaming content platform. Both companies will receive financing of approximately U.S.$1 billion from four strategic partners that will become shareholders: the Japanese bank Softbank, the investment bank Raine Group, the ForgeLight fund, and Google, to finance this transaction. The corporations intend to cover a potential market of 600 million Spanish speakers, of which 128 million are Mexican and 61 million Hispanics who live in the United States of America. This merger hopes to achieve estimated joint sales in the order of approximately U.S.$4 billion.
THOR URBANA’S COMEBACK TO THE MEXICAN STOCK MARKET.
After its placement of approximately U.S.$124 million in the Mexican stock market in 2018, real estate developer Thor Urbana issued its first Fiduciary Investment Project Certificates (CERPI for its acronym in Spanish) in the Mexican stock market for an approximate amount of U.S.$3 million, out of approximately U.S.$179 million planned for its series A. The resources obtained by the CERPI were placed through the Institutional Stock Exchange (BIVA for its acronym in Spanish) and will be used for the development, acquisition, and operation of the hotel, industrial, commercial, and mixed-use real estate projects in strategic locations within the main cities and tourist destinations in Mexico.
MILLIONAIRE INVESTMENT BY ARCA CONTINENTAL.
Arca Continental, a Mexican beverage manufacturing and distribution company plans on investing approximately U.S.$500 million in all the countries in which it operates. The investment will strengthen and innovate its production, distribution, and execution capacity, as well as promote digitization and sustainability projects. Forty-two percent of the investment will mainly be destined to its operations in Mexico, twenty-eight percent in the United States of America, and the rest in countries of South America.
A GREEN BOND IN THE MEXICAN MARKET.
Mexican airport operator, Grupo Aeroportuario del Centro Norte (also known as OMA), completed the issuance of approximately U.S.$166 million in long-term notes listed in the Mexican stock market, one of them being a “Green Bond”. With this transaction, OMA becomes the first airport operator to place this type of bond in the Mexican market and the only one with a listed bond in Latin America. The bond issuance attracted the participation of almost 40 investors.