Mexican investment management company Mexico Infrastructure Partners (MIP Real Assets) is seeking to invest more than US $12 billion in various projects in Mexico, including renewable energy and highway projects.
The Bloomberg news agency reported the plan on Tuesday and MIP Real Assets subsequently confirmed its proposed investment on LinkedIn.
Bloomberg reported that MIP Real Assets is “working to raise money, including about $6 billion in equity and $6 billion in debt, for its five-year pipeline of projects.”
It said that the company is “lining up investments from major institutional investors, sovereign wealth funds and Mexico’s pension funds.”
MIP Real Assets confirmed on LinkedIn that it is planning to invest more than $12 billion in renewable energy, highways, digital infrastructure and midstream (oil and gas) projects.
“At MIP Real Assets, we are deeply committed to Mexico’s long-term development through high-quality investments in energy and infrastructure,” the company said.
Bloomberg reported that around $8 billion of the firm’s planned investment would go to renewable energy projects. It said that some $2.5 billion would go to highway projects, $1 billion to midstream opportunities and $500 million to digital infrastructure.
Bloomberg described the planned investment as “one of the most ambitious private-sector programs yet” in Mexico as “President Claudia Sheinbaum pushes for more development.”
The publication of Bloomberg’s report came the same day that the federal government announced a package of measures within the Plan México framework to unlock and accelerate investments, especially large and strategic ones.
The government is eager to attract investment across a range of sectors, including energy, but rules that favor state-owned companies such as Pemex and the Federal Electricity Commission (CFE) discourage rather than encourage private and foreign participation.
Earlier this year, the Office of the United States Trade Representative strongly criticized Mexico’s energy sector framework, raising a range of concerns that it says disadvantage U.S. energy companies.
MIP: ‘We have the projects, we have the partners and we have the capital’
On its website, Mexico Infrastructure Partners describes itself as a “leading independent energy and infrastructure investment manager in Latin America,” and says it owns and operates “$6.6B+ in equity AUM [assets under management] across 37 assets in power, transport, digital, logistics, water and social platforms.”
The company helped structure the Mexican government’s $6 billion 2023 purchase of 13 power plants from Spanish energy company Iberdrola.
Regarding MIP’s plans for the next five years, Guillermo Fonseca, a partner at the firm, said in a statement on Tuesday that, “We have the projects, we have the partners and we have the capital.”
Bloomberg noted that the company “has already committed more than $1 billion to a deal to acquire a highway from conglomerate Grupo México and the purchase of a stake in two wind farms from Spain’s Acciona Energia and a U.S. portfolio.”
Bloomberg also reported that “MIP said it will invest in new power generation projects” with the CFE, which has a guaranteed 54% share of the national electricity market.
“Renewable energy projects will include new wind and solar installations as well as the purchase of operating assets from developers,” Bloomberg wrote.
“Highway investments will add around 500 kilometers (310 miles) of new construction and 200 kilometers of acquisitions in the Bajío region and the Mexico City-León corridor,” it added.
Bloomberg cited MIP — a Mexico City-based firm — as saying that “more announcements will be made in the coming months.”
With reports from Bloomberg
