Goldman Sachs inks joint Mexico energy, infrastructure deal - source
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[January 19, 2016]
By Alexandra Alper
MEXICO CITY (Reuters) - The private equity
arm of Goldman Sachs Group Inc <GS.N> has teamed up with Mexican
consulting firm Ainda to jointly invest in energy and infrastructure
projects in Mexico, a person familiar with the matter said.
Goldman's Merchant Banking Division signed a deal with Ainda in
December to "identify, pursue, evaluate and make investments
jointly," according to a securities filing that was seen by Reuters
and will be submitted to the bourse shortly.
The person said Ainda would invest up to $1.15 billion in projects
with Goldman. The joint investments would be worth at least $100
million each and span the oil and gas, power generation,
transportation and water infrastructure sectors.
Goldman would put up at least 50 percent of the total equity amount
in joint projects, the source said.
Mexico has begun seeking a larger role for private investors in
infrastructure and energy projects as government finances have been
hit by sinking oil prices and output.
The finance ministry unveiled a new vehicle in September similar to
a real estate investment (REIT) trust called a "Fibra E", which aims
to lure private investment into energy projects.
Goldman's merchant banking division has raised over $124 billion to
invest across corporate, real estate and infrastructure sectors,
according to its website.
Ainda and Goldman met last week in New York to begin selecting
projects and the investments are likely to get under way soon, the
person said. Goldman Sachs Merchant Banking Division and Ainda
declined to comment.
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Reuters reported in November that Ainda plans to raise 21 billion
pesos ($1.15 billion) through a public offering of certificates for
an infrastructure energy investment vehicle. The offering is
expected for late February or early March.
The vehicle, which is designed to raise the money that Ainda will
jointly invest with Goldman, has the option to convert into a Fibra
E or shift specific projects to such a trust.
(Reporting by Alexandra Alper; Additional reporting by Jean Luis
Arce; Editing by Lisa Shumaker)
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