Héctor Arangua
Partner
Nader, Hayaux & Goebel
/
View from the Top

Financial Help for Midsize Companies

Wed, 01/18/2017 - 15:22

Q: What separates NHG from its competitors in Mexico?

A: NHG is a law firm with full knowledge and experience in the transactional and corporate finance area. The market has acknowledged our expertise in these areas as well as our commitment to go the extra mile to keep our clients happy and protect their interests. We prefer to work on sophisticated transactions with a focus on innovation. These are the kinds of deals that make us different. Due to this approach we have been recognized by the Financial Times as one of the most innovative law firms in Mexico. NHG has special M&A transactional experience and banking and finance experience. On the energy regulatory side, we track legal developments to garner knowledge and understanding of regulations and can have a fluid discussion with authorities such as the Ministry of Energy, CNH, CRE and ASEA to offer more value to our clients.

Q: What specific opportunity do you can see in the Mexican energy market?

A: At this time and due to the lack of an efficient transportation and storage system, many refined products such as gasoline and diesel are transported via trucks, which is an inefficient and expensive transportation system. New regulations will be required to increase inventory and storage infrastructure in Mexico to avoid potential shortages. Storage and the construction of pipelines are hot topics and will require billions of dollars’ worth of investment. We are therefore analyzing the economic and regulatory framework in this area to help companies finance such infrastructure projects.

Q: What kind of financing tools have been successful in the Mexican market?

A: There are three main financing tools that have been successful here. One is banking, another is private equity and finally the public markets via the issuance of bonds on the Mexican Stock Exchange (BMV). Banking institutions are trying to do business by financing infrastructure and they are increasing their participation in the financing of projects. As for private equity, Mexico has a really useful tool called CKDs. There are also global private equity funds focusing specifically on Latin American and Mexican projects. We can help companies work with any of these three financing tools due to our broad experience with structured financing, M&A and capital markets.

Q: What blind spots do you detect in Mexican oil and gas regulations?

A: Current regulations have, as all new regulatory frameworks do, issues that need to be solved. In this regard, CNH, CRE, ASEA and the Ministry of Energy have accomplished a lot by stating regulations and approaching players to ask for feedback, allowing for a positive and transparent dialogue. They are all open to improving the regulation and to moving forward with an active agenda. In my opinion they should focus their next steps on strengthening the whole legal framework.

Q: Which customers are most attractive for NHG?

A: NHG likes to work with companies from beginning to end by obtaining permits, allowing clients to merge and establish joint ventures, acquiring financing and offering many more transactional services. Financing is one of our specialties. Multinational companies tend to have in-house counsel departments with diversified services and 200-300 lawyers highly specialized in public bidding and contracts. If they do need us, we will be happy to work with them but we want to focus on clients that require innovative solutions, such as the midsize companies from Round 1.3. We can offer them experience from our many years working with PEMEX and its contractors. We know the region and the market and can give them a competitive advantage as they integrate into the Mexican market. Law firms usually wait for clients to come with questions and work proposals. We are not like that. NHG likes to contact prospective clients at an earlier stage and offer them the possibility to expand their business, by knowing and connecting them with other companies to create added value and synergies.