Category: Regions

Mexico’s CFE has sold MXP500m in floating-rate bonds on the domestic market. The deal follows a much larger MXP5bn fundraising in March, and takes advantage of a special bond program for infrastructure spending. The 2013 bonds pay TIIE plus 51bp. Proceeds from the AAA transaction will used to pre-fund specific expenses for certain kinds of infrastructure projects known as productive infrastructure with deferred expenditure impact, through a fideicomiso jointly set up with Bancomext. Ixe managed the sale.

A new venture capital fund in Mexico, Alta Ventures, has made a first closing of $50m and plans to raise about $100m. It aims to invest in early-stage IT, telecom, education, health and energy companies, Alta managing director Rogelio de los Santos tells LatinFinance. So far, investors include Nafin fund of funds Corporacion Mexicana de Inversiones de Capital, which has invested $20m out of the initial $50m. Mexican family offices, institutional investors and retail are also participating. De los Santos says 20% of the fund’s capital will be invested in companies that are ready to be scaled up. He expects that an average of $7m-$9m will be invested in these types of companies. The rest will be invested in early-stage firms, with each one getting around $5m. Venture capital is a fairly new concept in Mexico, but local fund managers say that it starting to gain momentum. “Last year there was one venture capital fund. Now there are around 5 or 6. In 3 years, I expect there will be some 20 funds,” says de los Santos.

Mexico’s Ignia Fund I has raised almost $100m for local venture capital, says cofounder and managing partner Alvaro Rodriguez. Among investors chipping in are the IFC, which is investing $10.0m, the Corporacion Mexicana de Inversiones de Capital, which is investing $7.5m and the IDB, which provided $25.0m in debt financing. Soros Economic Development and CAF also participated, says Rodriguez. The fund invests an average of $2.0-$5.0m in businesses catering to the low-income sector. The Ignia vehicle, which Rodriguez says has already invested about $20m in Mexico, focuses on construction, real estate, health, telecoms and agriculture. It plans to hold investments for about 7-8 years and provide investors an IRR of about 25%, he adds. Ignia’s portfolio includes companies like healthcare services provider Primedic, real estate company Ignia Bienes Raices, organic produce grower and exporter Pro-Organico, and construction materials company MexVi.

Tiendas Comercial Mexicana has again extended the period for its local debt exchange offer, to April 30 from April 14. Parent Controladora Comercial Mexicana seeks to extend its maturity profile as it recovers from crisis-related derivative problems. The retailer is offering holders up to MXP1.5bn in new 2016 notes in exchange for 5 series of outstanding bonds with nearer maturities. The new bonds are rated BB on a national scale and should be issued following the close of the offer. Comerci has not indicated the acceptance rate to this point. Ixe is managing the transaction, originally launched January 5.

Mexico’s Liverpool aims to place new 10-year bonds in the domestic market in May, according to regulatory filings. The issuer is heard looking to raise up to MXP3.5bn, a maximum MXP2.5bn in fixed rate peso bonds and up to MXP1bn in fixed rate UDI-denominated paper. Banamex and HSBC are managing the sale, which would raise funds for general corporate purposes.