Export-Import Ties Between Italy and Mexico

Q: How is SACE SIMEST promoting Italian products and services in Mexico?

A: As an export credit agency (ECA), our job is to financially support Italian companies that have activities in Mexico. Our contribution to those transactions is reflected on the buyer’s side. We do not necessarily offer our services to the exporter company because our main focus is concentrated on their Mexican partners. We have consolidated strategic alliances in the country that are known as the Italian system.

This structure includes SACE SIMEST, which represents Cassa Depositini e Prestini, and other bodies like the Italian Trade Agency (ITA) and the Italian Chamber of Commerce in Mexico. Since we complement each other, we have created a good synergy with all the Italian entities in Mexico. For instance, when ITA introduces Mexican importers to Italian exporters, as soon as a transaction is established we get involved on the financial side.

Q: What sectors are attractive for Italian investment and what is the role of the oil and gas industry in this landscape?

A: Our mandate is to follow the trends of the Italian industry. SACE’s portfolio should be very similar to that in Italy. At the moment, the largest participation is focused on cruise ships. For example, if an Italian cruise ship exporter sells one or two ships per year, this number represents 30 percent of our portfolio. After this, machinery is a very attractive segment. It encompasses machines that are used in the steel industry, aircraft, clothing and auto parts. The oil and gas industry is our third-ranked segment in terms of demand. Compared to other economic activities, this industry represents a huge opportunity for investment.

Q: What transaction best highlights SACE SIMEST’s efforts in the Mexican oil and gas industry?

A: Italy is very active in the oil and gas sector. Its natural markets for expansion in terms of priority are Europe, the MENA region and the Americas. Mexico has a similar corporate structure to Italy’s, not only with large corporations, but also with middle-sized businesses. The market’s liberalization opened opportunities in every segment of the value chain. Not only are deepwater E&P activities attractive, but also refining.

There are many Italian companies interested in participating in the Dos Bocas refinery project, as well as in future editions of licensing rounds. Hence, we foresee untapped opportunities in Mexico. For instance, this year we financed PEMEX’s purchase of products and services from Italian exporters in a transaction that totaled US$334 million.

Q: How does this entity balances its export target while coping with national content requirements?

A: This is a very difficult thing to do, given that our mandate is to support transactions that are related to Italian exports. If there is a large project around a bid contract or involving project finance where only Mexican companies participate, we can promote the creation of a JV. While every ECA is regulated by the OECD, we try to enhance projects with cheaper financing. To achieve this, we need Mexican importers to be flexible enough to purchase Italian goods. We have been very successful in developing what we call a 'push strategy,' which is very different from what other ECAs do.

Normally, an ECA gets involved in a transaction when there is already a contract between an importer and an exporter. We are more proactive, and bring resources to those companies by working hand in hand with a bank. Because companies like PEMEX have specific procurement policies, we organize matchmaking events. Through this networking strategy, Italian companies can get to know the CAPEX for PEMEX’s next projects. The results have been so successful that we are trying to replicate this model with CFE.

SACE SIMEST is part of the Cassa Depositini e Prestini group, is an export credit agency specialized in supporting Italian companies that want to grow globally through a synergy of integrated skills, insurance and financial services.