Beel Infrastructure Partners Fund Sustainable Projects in MexicoBy Paloma Duran | Fri, 11/06/2020 - 16:22
Beel Infrastructure Partners, an asset management firm focused on the infrastructure sector in Latin America, has launched the first non-banking platform for infrastructure financing credits in Mexico. These represent a solid, high credit, acyclic and defensive asset for investors. The objective of this platform is to mobilize resources towards sustainable infrastructure, which will offer an attractive combination of risk and return to investors, besides promoting economic recovery in the country.
Investment came from the company’s issuing of Development Equity Certificates (CKD) on the Mexican Stock Exchange (BIVA) that generated MX$1.8 billion (US$87 million). This money will be used to lend MX$850 million (US$41 million) to infrastructure projects, in which the International Finance Corporation (IFC), a member of the World Bank, will participate as well.
The company seeks to help Mexico to become an economic power by the developing sustainable projects that will improve the country’s growth and competitiveness. According to María Ariza, General Director of BIVA, this type of investment reinforces the attractiveness and confidence in sustainable projects in Mexico, reported Inmobiliare .
Gerónimo Gutiérrez Fernández, Managing Partner at BEEL Infrastructure Partners and former Mexico Ambassador to the US, said in a virtual conference that the country needs to invest MX$997 billion (US$48 billion) in infrastructure to incentivize the economy. He emphasized that it is necessary the participation and cooperation of both public and private sectors to create certainty for investors.
Gutiérrez mentioned that even though current times are not the best to invest in infrastructure, the country needs to increase its national investment. He explained that Mexico is currently living a period in which there is a lot of financial liquidity. Investment is necessary and the capital can be easily attracted through certainty and good projects.
Currently, investment opportunities have been allocated to road, water and telecommunication industries and according to Gutiérrez, it is estimated that BEEL Infrastructure will provide a US$20 million in mezzanine debt plus another US$50 million in senior debt that will be supported by banks and other institutions, reported El Economista.
The company reaffirmed its commitment to the United Nations Principles for Responsible Investment (UNPRI) and its conviction to develop and fund initiatives that meet international standards and environmental regulations to ensure better practices, social responsibility and corporate governance.