| VIEW FROM THE TOP
A RICH FUTURE AHEAD FOR INFRASTRUCTURE INVESTORS FELIPE DUARTE Deputy Director General of Infrastructure and Energy at Grupo Financiero Banorte
Q: How has the infrastructure industry evolved in the last
it closes the gap for some uncertainties or circumstances
years and how has the financial market evolved with it?
that the government sometimes encounters.
A: I do not see a financial gap within the Mexican
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infrastructure industry. I do see a vibrant market in which
Q: How will Banorte’s purchase of Interacciones impact
the selection and professionalization of projects has
its role infrastructure industry and what are what types of
improved drastically in the last years. I also see a financial
projects does it want to invest in?
market that has evolved in the last 10 years, both in equity
A: Banorte’s purchase of Interacciones will have a positive
and debt. The creation of new equity funds and financial
impact on the company’s portfolio and results. It will help
instruments such as CKDs has become important tools to
us understand the infrastructure needs of local governments
finance the country’s infrastructure development. Several
and together we can best meet Mexico’s infrastructure and
commercial banks have also began participating more in
energy needs. Interacciones is an important player within the
the industry. Banorte has specialized in both infrastructure
country’s infrastructure market and has been a flagship of
and energy sectors and we have seen that the market is
the banking industry in the last 10-12 years. It is very good in
becoming stronger. We see that the infrastructure financing
understanding the infrastructure needs of local governments.
market is becoming more intricate as years go by and this is
Project selection is important when providing financial services
good news for the project, for the banks and for the people.
to local governments and municipalities. For a project to be sustainable it must generate productivity gains. Otherwise the
Q: How has Banorte participated in the financing of
project may be compromised in the long term. Sustainability
infrastructure projects in the last few years?
refers to social, financial and environmental sustainability. This
A: Banorte provides a complete array of financial products
makes the selection of a project much easier.
to clients and one of our strengths is that we know the market and we are local players, which is something
NAIM is one of the best examples of a bankable project.
international companies always look for when investing
There are various commercial and development banks, as
in Mexico. We are actively providing financial products
well as financial instruments being used, apart from the
and services to various participants in the construction
fact that it is also an environmentally sustainable project.
of NAIM and airports are a large area of interest for us.
For investors to feel confident investing in an infrastructure
In the last 18 months, PPPs have been more active in the
project in Mexico, the project must prove that it is
country’s road sector when it comes to conservation and
sustainable, that it fulfills a need and that it is also a good
maintenance contracts. We believe that the port sector will
anchor for investment in impoverished areas.
also continue to grow in the next five to 10 years, mainly to Lazaro Cardenas and Veracruz. We are currently not
Q: How has the participation of pension funds and Afores
participating in passenger rail projects but we are open
impacted the country’s financial sector when it comes to
to new opportunities that may arise. PPPs are a relevant
infrastructure?
tool for governments to build and maintain infrastructure.
A: Almost all major funds are now operating in the Mexican
Although it is a relatively new law, it has great potential in
market. This is a good thing because that means that there
the next few years. It is a very good tool for the market, but
are more professional investors in the market that bring with them set of skills that complement the existing players. There is this need to develop managers that can deliver on
Grupo Financiero Banorte is one of the four largest commercial
the investments, including the operation and maintenance
banks in Mexico. It has participated actively in financing
of those facilities. Having stronger partnerships in the
infrastructure projects such as NAIM and various highway
market allows us to provide financial structuring that is
projects. It recently acquired Banco Interacciones
more efficient to specific assets or projects.
