(Bloomberg) July 26, 2010 – Prudential Financial Inc.’s Mexican unit and three other investment companies will seek to raise as much as 16.3 billion pesos ($1.28 billion) by the end of September from the government and pension funds.
The four trusts will use the money to finance real estate and transportation infrastructure projects in Mexico. Alonso Garcia Tames, chief executive officer of the development bank known as Banobras, and Federico Patino, head of the national infrastructure fund known as Fonadin, spoke to reporters about the new round of securities’ sales on July 23.
The offerings will be the second this year under a plan Mexican President Felipe Calderon introduced last year. Calderon wants to increase private financing of road, bridge and real estate projects by tapping the 1.28 trillion pesos held by the nation’s pension funds.
Fonadin and Banobras will invest 3.26 billion pesos in the trusts, and the rest of the capital will be sought from pension funds, banks and brokerages in offerings through Mexico’s stock exchange. Fonadin’s and Banobras’s participation will be capped at 20 percent, Garcia Tames said.
AMB Mexico Manager, a local unit of U.S. industrial real estate landlord AMB Property Corp., will sell as much as 3.3 billion pesos of trust fund shares July 27, according to filings with Mexico’s stock exchange. The proceeds will finance warehouses and industrial developments in Mexico.
That will be followed in August by PLA Inmuebles Industriales, a local unit of Prudential Financial Inc., which plans to raise as much as to 6.5 billion pesos to finance industrial developments. A specific date wasn’t provided.
In September, Artha Capital will raise as much as 2.5 billion pesos for housing, tourism, commercial and industrial real estate projects. Mexico Retail Properties will raise as much as 4 billion pesos that same month for highways, water treatment facilities, hospitals, schools and prisons, according to the presentation.
Pedro Ordorica, president of the Mexican pension fund regulator Consar, said in an interview July 15 that the nation’s pension funds have invested 16 billion pesos in infrastructure trusts and are able to invest 100 billion pesos more under the funds’ investment rules.
By Adriana Lopez Caraveo and Jonathan Roeder