MEXICO LOOKS TO MLPs

摘要

When Mexico opened up its energy sector to foreign investors for the first time in almost three-quarters of a century, it was not banking on oil prices to plunge to their lowest level in more than a decade. That downtown has taken its toll on the government's finances, with spending plans ripped up and projects canned. Now, the government is seeking other ways to boost infrastructure investment, and it has been looking to its northern neighbour for inspiration. Last autumn, Mexico passed legislation to introduce the Fibra E - a structured investment vehicle that allows energy and infrastructure companies to cash in on mature assets by contributing them to a trust and selling shares in the trust to investors, similar to how a master limited partnership works in the US.