Macquarie Bullish on Mexico

Despite the fact that proximity to the US drags Mexico down more than other LatAm nations, Macquarie Capital remains optimistic on the country’s long-term prospects. “We believe Latin America is well positioned at this part of the 21st century to take advantage of growth, and the best place to start our push into Latin America is Mexico,” Mark Ramsey, president of Macquarie Capital Mexico, tells LatinFinance. The Australian bank opened a Mexico City office in January, its first in the region. “This is stage one of what will be a broader advance in to the continent,” says Ramsey. The initial focus is a planned MXP-denominated infrastructure fund targeting Mexican institutional investors and the international buyside. Macquarie also has plans to eventually offer the same corporate finance services that it offers elsewhere. It is already advising Mexican companies in areas like debt restructuring. Ramsey says his institution has a flexible approach, and plans to allocate resources depending on opportunities presented. Macquarie remains optimistic about the government’s infrastructure agenda, he says, despite delays to some of the most anticipated projects. “I don’t think there’s any shortage of opportunities,” Ramsey says. He notes that in many cases, projects have been accelerated in response to the downturn. Looking ahead, he highlights Farac III – for which Macquarie has submitted an expression of interest – as well as opportunity in oil and gas, electricity generation, and water treatment as upcoming possibilities. Though harder to raise than before, capital will still be available for the right projects, he says. “Once we get through the current economic slump Mexico might be better placed than most other countries to grow very significantly,” Ramsey concludes.