New Investment Vehicle to be Introduced on Mexican Stock Exchange

Peña Nieto mentioned the creation of Fibra E in his annual address to the nation. (Photo: El Economista)

With the ongoing energy reform in Mexico, many domestic and foreign companies are eager to participate in the Mexican oil and gas renaissance. One of the biggest opportunities is the need for investors to develop midstream capacity to support new exploration and production.

On this regard, Mexico’s president said that a new energy investment vehicle will be introduced.

On Wednesday September 2nd, Mexican President Enrique Peña Nieto declared that his government would soon introduce a new investment vehicle on the stock exchange aimed at tapping markets to fund energy infrastructure projects.

Peña Nieto mentioned the creation of Fibra E in his annual address to the nation.

Peña Nieto mentioned the creation of Fibra E in his annual address to the nation. (Photo: El Economista)
Peña Nieto mentioned the creation of Fibra E in his annual address to the nation. (Photo: El Economista)

Reuters reported last week that finance authorities are putting the finishing touches on rules for the vehicles, which will be similar to American “Master Limited Partnerships” (MLP).

A master limited partnership (MLP) is a limited partnership that is publicly traded on an exchange. It combines the tax benefits of a limited partnership with the liquidity of publicly traded securities.

MLPs pay their investors through quarterly required distributions, the amount of which is stated in the contract between the limited partners (the investors) and the general partner (the managers).

 

(Reporting by Joanna Zuckerman Bernstein)

Source: http://www.reuters.com/article/2015/09/02/mexico-energy-idUSE1N0ZU00X20150902



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