Fibra UNO, the first and largest real estate investment trust (REIT) in Mexico, was able to upsize its dual-tranche USD1bn bond with an innovative “long-distance” roadshow that saw over 4x oversubscription from a variety of international investors.
In elections last year, voters in both Brazil and Mexico opted overwhelmingly for populist candidates. To be sure, Latin American populism takes many shapes. In Mexico, Andres Manuel Lopez Obrador’s version (AMLO) promised significantly higher spending on social programmes and infrastructure. Brazil’s new President, Jair Bolsonaro, has pledged assertive efforts to clamp down on crime and boost security. While they may not share the same visions of prosperity or the means by which they are attained, the two leaders do share challenges, writes Brian Mullaney, Strategist, Global MacroViews.
Mexican borrowers are gradually adjusting to the new market environment that has emerged since the inauguration of Andrés Manuel López Obrador, and amid broader emerging market volatility driven by the rise in global interest rates. Nevertheless, CFOs at a Breakfast Roundtable hosted by HSBC and Bonds & Loans in Mexico in February have raised important questions about some of the new administration’s policy decisions, highlighting the need for clear, consistent and transparent decision-making as essential in their bid to secure stronger growth and investment.
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.
- Political Volatility Breaks Wave of M&As in Latin America
- Acciona Energy Targets 2000MW Capacity in Mexico and Central America Within 3 Years
- Markets Cautiously Optimistic after “Tropical Messiah” AMLO’s Mexico Election Landslide
- 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