Finance & Insurance

Through the National Infrastructure Program (NIP) 2014-2018, the government expects to raise a total of MX$7.75 trillion, of which 63% is expected to be coming from public resources, while the private sector is thought to be contributing 37%. Access to adequate financing has repeatedly been identified as one of the most problematic factors for doing business in Mexico. Yet, according to the International Financial Law Review (IFLR), new developments in infrastructure-related sectors have eased the generation of alternative financing in Mexico through structured finance, securitizations, secured lending, capital markets, and loan syndications. While banks have focused on financing advanced-stage projects, development banks, and private equity have been leading the development of new or existing projects.

This chapter outlines the main trends in the financing of Mexico’s projects, reviews the role of government agencies such as Banobras and Fonadin in financing infrastructure projects and promoting the private sector’s participation. It also presents expert insights into the financing opportunities offered by private financing institutions.

HIGHLIGHTS OF CHAPTER 13

  • Role of government agencies in financing infrastructure projects
  • Tools used to promote private sector participation
  • Private investment mechanisms (REITs, CKDs)
  • Minimizing risk associated with participating in bidding processes