Last year, Grupo Bimbo’s debut hybrid transaction marked a milestone not just for the company but the broader Mexican corporate bond market, where primary market activity for hybrid securities has traditionally been dominated by select financial sector issuers.
Americas Market Intelligence’s John Price takes stock of last year’s hectic election cycle in Latin America and looks more closely at the fortunes of some of the region’s key markets: Brazil, Mexico and Venezuela.
Mexico has made significant strides in developing and deploying renewables in recent years, but recent regulatory uncertainty has cast a pall over the sector and may start to weigh on the bankability of transactions. Bonds & Loans speaks with Benny Villareal, Chief Executive Officer at Vive Energía about the company’s corporate funding strategy.
The recent explosion at an oil pipeline in Tlahuelilpan, Central-Eastern Mexico, took the lives of 114 people and dozens more were left with severe injuries. The blast brought Mexico’s ailing oil and gas infrastructure back into focus just as the new president sets on a path to revitalise the industry by undoing some of his predecessor’s reforms to liberalise it. But will he succeed?
Mexico’s political environment and markets experienced unprecedented levels of volatility in 2018, but against that backdrop borrowers took to the markets to launch landmark transactions that still broke barriers and paved the way for others to follow.
Mexico-based real estate investor Terrafina has grown at a considerable rate over the last five years, supported by a well-balanced business model that ought to help it reap the benefits of the rapid growth of Mexico’s property markets during that same period. But market uncertainty and tough external conditions are pushing the company to adjust its plans, says the company’s CFO Carlos Gomez.
While Mexican markets remain on edge with regards to continuity of projects under the new regime, international players, like Blackrock, are encouraged by solid fundamentals and a busy infrastructure pipeline in Mexico and across the region. Bonds & Loans speaks to Juan Alberto Leautaud, the Managing Director, Real Assets and Infrastructure, at BlackRock Mexico.
The first half of 2018 has seen a record-breaking volume of corporate consolidation across the globe, and Latin America has become a prominent setting for such activity. The latest slowdown in M&A activity is thought to be stemming from the peak of elections-related volatility, from Mexico to Brazil, and most expect business to continue as usual once the dust settles.
Miguel Rubio, Country Manager, for Acciona Energy, a subsidiary of the Spanish renewable project developer Acciona, talks to Bonds & Loans about the company’s joint venture with Tuto Energy following their landmark USD264mn 18-year project finance deal, solar energy production growth, and strategic initiatives in Mexico and beyond.
Months of uncertainty finally ended in July as Mexico decisively voted in its new president, Andres Manuel Lopez Obrador (better known as AMLO), an ageing left-wing icon with populist appeal. With almost six months until the official inauguration, he is trying to woo the markets with a more conciliatory tone. If the currency and bond yields are anything to go by, it appears to have worked, but will it manifest in policy?
- Nexxus Capital CFO on Mezzanine Financing, CERPIs, and Looking Past Political Noise
- Juan Pablo Newman on Mexico’s Elections, Peso’s Resilience and Samurai Bonds
- SWOT Analysis: Mexico Elections and Beyond
- CASE STUDY: MTP Navigates Regulatory Unknowns to Issue Mexico’s First Tower Securitization
- MTP CFO Gonzalo Cornejo on Setting the Pace for Securitisations in Mexico’s Local Market