VIEW FROM THE TOP |
ENABLING ACCESS TO CAPITAL AND DEBT MARKETS JOSÉ-ORIOL BOSCH CEO of BMV Group
Q: How has BMV Group protected itself against
Q: How can BMV Group help to bridge Mexico’s
external shocks?
infrastructure gap?
A: Companies listed on the BMV are so diversified in terms
A: BMV Group has already helped, considering there are
of sectors, sizes and business segments that the impact
many infrastructure companies listed on the exchange. We
of geopolitical uncertainty has been much less intense in
also have companies accessing financing through debt and
Mexico. I think Mexico, just like Canada and the US, needs to
these are the most traditional instruments in the market. In
see the renegotiation of NAFTA and the subsequent signing
2009, CKDs were created and since then around 100 issues
of USMCA as an opportunity to turn to other markets.
have raised close to MX$170 billion (US$8.85 billion). Of this,
Mexico does not only have North America as a potential
infrastructure represents about 30 percent.
market; it has a great number of free-trade agreements with other countries, even though the majority of trade is
Fibras were first raised in real estate in 2011 and their
focused on the North American region.
numbers continue growing. We are looking at new Fibras and we are about to raise a Fibra in the education sector,
Q: How can the International Quotation System (SIC) help
which will be the first of its kind. Also, Fibra Es were created
to position international companies in Mexico?
in 2015 and the first infrastructure Fibra E was raised by
A: SIC caters to foreign companies that operate in Mexico.
Pinfra in 2016. Since then, we have had various infrastructure
There are over 1,500 foreign securities listed on SIC from
Fibra Es, the latest being that of GACM, as well as a first
different countries and sectors. Of these, approximately half
Fibra E on the energy side issued by CFE. We have a range
are stocks and half are ETFs. In terms of mining, companies
of products for the industry to choose from and in 2017 we
from the US, Canada, the UK and from Latin America are
created the first Special Purpose Acquisition Corporation
listed on this index. This means any investor in Mexico can
(SPAC), which is very common in other markets.
buy these shares. Rather than listings, they can be seen more as a registry of international companies that allows
Q: Why has there been such a lack of demand for CerPIs
Mexican investors to buy shares.
compared to other products? A: In comparison to Fibras, which were a new asset class,
SIC represents more than a third of the total volume of the
CerPI is a product similar to CKDs but with some different
BMV, with the local exchange representing the remaining
management rules, including the role played by the
two-thirds. There is a great deal of interest because a Mexican
administrator. We had the first CerPI issued in real estate
investor can buy shares in an international company, pay in
and I think now we will start to see much more demand for
pesos and sell in pesos, while maintaining a fiscal advantage
the product. There are already various CerPIs that will be
compared to buying the shares in Canada directly.
launched in the coming months. It is always difficult to be the first but now that the first CerPI has been successful,
Q: What should the secondary regulation of the Fintech Act
the door has been opened and we will see more demand. It
include so innovation in the sector is not compromised?
was the same story with Fibras – the first real estate Fibra
A: The goal of the Fintech regulation is to add value. It
was raised by FUNO in 2011 and it was extremely complex
needs to define market value and how it will develop and
but it was more easily understood after the first issuance.
grow. Fintech sounds very nice but obtaining the financing for it is not so simple. We have been talking with those companies because they want to obtain funding to grow
BMV Group offers services for the operation and post-trading of
through the BMV. We are having this same conversation
stocks and derivatives in Mexico. It operates a stock exchange,
with various sectors that do not have access to financing
derivative products, an OTC securities and derivatives brokerage,
or that have trouble finding it.
a securities clearing house and a derivatives clearing house
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