National Banks: Key Allies to Develop Infrastructure ProjectsBy Paloma Duran | Thu, 09/22/2022 - 10:06
The Ministry of Finance (SHCP) stated that projects like the Mayan Train and AIFA would be backed by national development banks like NAFIN and BANOBRAS. Sustainable bonds could support states and municipalities in developing projects for water infrastructure and help reactivate local economies. In addition, Mexico agreed to work alongside the US in vital infrastructure projects that aim to benefit both countries.
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SHCP announced that the federal government will lean on national development banks to boost the construction of key national infrastructure projects with financing options and other means like factoring.
To counter the lack of investment in public works, experts argue it could be viable to use the country’s federal legal framework as well as instruments of the Mexican financial system to start issuing sustainable bonds.
The 2022 High-Level Economic Dialogue between Mexico and the US fostered vital agreements on zero-emission vehicles for 2030, investments to address wastewater issues in the Mexico-US border and other infrastructure projects.
The public debt of the State of Mexico is mostly spent on the construction of the new Chalco-Santa Martha trolleybus. The project will connect several municipalities in the state with Mexico City, making it one of the key public mobility projects for the inhabitants of the eastern part of the Valley of Mexico.
Mexico’s Minister of Infrastructure, Communications and Transport (SICT) is planning to unveil an MX$1.4 billion (US$70 million) investment for 2021 to 2023 to improve federal toll roads and road safety conditions.
Real Estate Trust FIBRA Monterrey raised capital in the Mexican Stock Exchange (BMV), where its bonds were received well by Mexican and foreign investors. The move is part of the trust's strategy to expand its operations and exploit the opportunities that nearshoring offers to Mexico.