Download The 8th Cumbre Financiera Mexicana April 9th, 2013

The 8th Cumbre Financiera Mexicana
April 9th, 2013
08:00-09:00
Conference Registration
09:00-09:05
Opening Remarks: Michael Brosgart, Director, LatinFinance
09:05-09:45
Keynote Address: Luis Videgaray, Secretary of Finance & Public Credit, Mexico
09:45-10:35
Opening Plenary Session: Financing Mexico – Risks, Opportunities & Strategies
Hopes are high for the incoming government of President Elect Enrique Peña Nieto. With a change of government come shifts in the
global economy that favour Mexico’s economic performance. Mexico looks increasingly appealing to a diverse and growing investor
base. Optimistic but cautious, the business community and investors are closely following the new government’s plans to restructure
the economy and reform the energy sector. This opening panel, comprised of leading investors, corporates, economists and advisers
will discuss the relationship between expectations and reality, the new government and Mexico’s capital markets, as well the ongoing
development of the Mexican economy and financial innovation.
What are the most salient risks to Mexico’s growth and to the performance of its leading sectors?
What new strategies can the Peña-Nieto administration implement to manage growth?
How can Mexico’s capital markets continue to evolve? What other financing instruments are available for issuers and investors?
How are Mexican companies adjusting their funding sources and capital structure given ongoing global market volatilities
How are Mexico’s banks preparing for the new capital requirements under the Basel III regulatory standards?
Moderated by: Stuart Allen, CEO, LatinFinance
Participants include:
Luis Sayeg, CEO, Afore Banamex
Gerardo Salazar, CEO, Banco Interacciones
Alberto Ardura, Managing Director, Head of Latin America Capital Markets & Treasury Solutions, Deutsche Bank
Ricardo Fernandez, Managing Director, Credit Suisse
Xavier de Uriarte, CEO, Afore Sura
Santiago Dawson, Head of Treasury and Corporate Finance, America Móvil
10:35-11:25
Workshop A: ECM – Real Estate Vehicles in Mexico’s Capital Markets
FIBRAs, a vehicle that is quite similar to a REIT in the US, represent an attractive investment option to gain
exposure to Mexico’s increasingly attractive real estate sector. FIB RAs, as well as other listed real estate
vehicles, offer investors the opportunity to capitalize on Mexico’s strong macroeconomic environment,
favorable demographics, attractive consumption trends, low formal retail and shopping center penetration, and
increased competitiveness in the manufacturing sector. These vehicles have encouraged the development of
the Mexican real estate market by providing an instrument through which institutional and retail investors can
access this market (securities that can be easily traded and have a readily identifiable market price), by serving
as a source of liquidity for developers and investors, and by contributing to the diversification of real estate risks
for investors. Strong demand in recent securities offerings demonstrate investors’ willingness to play Mexico’s
growth story through these vehicles and evidence the sector’s strong fundamentals.
What are the key characteristics of the FIBRA vehicle and what are the benefits for the players involved?
What are the FIBRAs listed on the Mexican Stock Exchange and how have they performed?
What other type of real estate vehicles may raise funds through Mexico’s capital markets?
What is the investor profile in these vehicles?
What does the deal pipeline look like?
Moderated by: Wenceslao Bunge, Global Head of Real Estate, Credit Suisse
Participants include:
Andre El-Mann, CEO, Fibra Uno
Lorenzo Berho, CEO, Vesta
Carlos Quevedo, Vicepresidente de Supervisión Bursátil, CNBV
Victor Zorilla, CEO, Fibra INN
Carlos Aiza, Partner, Creel, García-Cuéllar, Aiza y Enríquez
Manuel Gutierrez-Salorio, Director, Credit Suisse
Ignacio Saldaña, Chief Investment Officer, Afore Banorte-XXI
11:25-11:45
Coffee Break & Start of One-to-One Meetings
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The 8th Cumbre Financiera Mexicana (cont.)
April 9th, 2013
11:45-12:35
The Link Between Public Finances and Sub-Sovereign Debt
In recent years sub-sovereign borrowing in Mexico has grown, providing access to capital for Mexico’s states
and municipalities. On the other hand, this rapid growth has put the creditworthiness of the states and
municipalities under pressure. This has spurred initiatives in the financial markets and in congress to improve
and clarify the rules governing state and municipal debt. An expert panel of bankers, borrowers and regulators
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will thoroughly examine the link between public finances and sub sovereign debt, and provide solutions to avoid
situations of over-indebtedness that could lead to an eventual crisis.
Will state and municipal debt issuance meet investor demand? How is the market expected to evolve?
What strategies for obtaining resources and funding are being carried out? What are their limitations?
Has the credit profile changed for borrowing entities?
What factors should sub-sovereign entities consider when issuing short-term debt? What is the
international experience?
What is the current situation with public finances?
How much is sub-sovereign debt expected to rise in Mexico, given that a majority of the debt is not
registered with the SHCP?
Have sub-sovereign entities borrowed too much?
What can be learned from past state restructurings: Cohuila, Edomex and others
What regulatory changes are needed to promote orderly growth of sub-sovereign borrowing in Mexico?
Role of NAFIN, Banobras and other quasi-public lenders
Moderated by:
Gerardo Salazar, CEO, Banco Interacciones
Participants include:
Tirso Agustín Rodríguez de la Gala Gómez, Secretario de Finanzas, Estado de Campeche
Jaime Ramón Herrera, Secretario de Finanzas, Estado de Chihuahua
Carlos Noriega, Partner, GEA
Daniela Brandazza, Senior Director of Public Finance Ratings – Latin America, Standard & Poor’s
12:35-13:25
Workshop B: Innovation in Debt Funding Through the International Capital Markets
Borrowers in Mexico have recently issued debt in Pesos, Dollars, Euros, Sterling and Yen in the international
markets and continue to find good support locally. Despite the current uncertain global economic and capital
markets environment, with balance sheets in good shape and low levels of leverage, Mexican borrowers should
have many opportunities in different currencies and markets. This session will examine the best strategies for
accessing the international capital markets in the current environment from both a borrower and investor
perspective.
Short to medium-term prospects for Latin American credits in the international and domestic markets
New trends in debt issuance: sources of capital, structuring, pricing and execution issues.
The benefits and risks of issuing in Pesos, Euros, Dollars and other currencies.
High yields and oversubscription, can Mexican debt issuers keep up with demand?
The diversification of institutional investor’s portfolios.
The role and importance of follow-on offerings in providing liquidity for today´s credit environment
What are the impediments to international capital markets access for growth companies?
Moderated by:
Francisco Hernandez, Director of Debt Capital Markets – Mexico, Deutsche Bank
Participants include:
Carlos Caraveo, Gerente de Financiamientos e Inversiones, Pemex
Eduardo Alonso Ferrer, Funding Director, Banco Santander México
Sergio Rodriguez, Senior Director, Fitch Ratings
Luis Preciado, Partner, Head of Accounting and Capital Markets Advisory – Mexico, KPMG
Sergio Méndez, Chief Investment Officer, Santander Asset Management
Alejandro Diaz de Leon, Director of Public Credit, SHCP
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The 8th Cumbre Financiera Mexicana (cont.)
April 9th, 2013
13:25-14:15
Challenges & Opportunities for Public-Private Co-Investment through Service Provision Projects (PPS)
In the last decade, Mexico has attracted a large number of private investors to participate in one of the most
ambitious programs of PPS across strategic sectors such as communications, energy, water, health, education
and security. In order to achieve sustained growth in the development of new infrastructure through PPS
schemes, projects should be designed that are attractive to the private sector and that in turn are bankable in
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delegates
the capital markets. This panel will explore the issues raised in PPS schemes and seek to define common
challenges, solutions and strategies to effectively tap bank and capital market financing.
What role do commercial banks play and what are their limitations?
How can bond issuances support PPS projects? How is the bond market evolving in Mexico?
How can PPS pricing be improved by incorporating long term financing? Does it increase the profitability
of the sponsor?
How can PPS agreements be improved?
What role do development banks play in the pre-operation stages?
Development banks and the bond market: subordinate financing, guarantees to mitigate for a lack of
payment deduction capts, early termination guarantees, etc.
Moderated by:
Alonso Garcia Tamés, Managing Director of Public Sector & Markets Origination, Banamex
Participants include:
Luis Dosal, Director of Projects, Banobras
Jerónimo Gerard, President, Mexico Retail Properties
Eugenio Lopez, Director General – Mexico, Fitch Ratings
Raúl Murrieta Cummings, Subsecretario de Infraestructura, Secretaría de Comunicaciones y Transportes
14:15-15:30
Luncheon
15:30-16:20
Workshop C: Local Debt Capital Market Financing
This session will explore the local debt capital markets and the current prospects for broader issuance from a
wider range of corporates. It will examine the local credit markets, the advancement of HY, and the different
products and structures that corporate Mexico can access to fulfill their funding needs.
How is the local credit environment and how is it expected to evolve?
What is the role of the role of Hacienda in the local credit markets?
What are the most salient trends in local debt: structuring, pricing and execution?
Financing strategies for companies with EBITDA of $50-$100 million USD?
How can corporates capitalize on the in interest of international investors in peso denominated debt?
To what extent is the lack of a vibrant secondary market hampering liquidity and thus issuance?
What are the preferences and appetites of the Afores and other key investors in the current environment?
What is expected ABS and MBS deal flow in 2013 and what the prospects for covered bonds?
Moderated by:
Mariana Santibañez, Reporter, LatinFinance
Participants include:
Victor Herrera, Managing Director & Mexico Office Head, Standard & Poor’s
Sergio Camacho, Treasurer, Kimberly Clark de Mexico
Leopoldo Villareal, CFO, Grupo Senda
Jorge Marquez, Head of Capital Markets, Infonavit
Marcel Gay Soto, Treasurer, Grupo Herdez
Alfredo Gómez Pérez, Partner, Kuri Breña, Sánchez Ugarte y Aznar
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The 8th Cumbre Financiera Mexicana (cont.)
April 9th, 2013
16:20-17:10
Workshop D: Infrastructure Finance for Developers, Operators and Concessionaires
Infrastructure developers, operators and concessionaires are seeking innovative financing solutions, but huge
variation in structures, risk hedging strategies, ratings and regulatory environments makes solving these issues
complex and financing projects difficult. This panel will explore the issues raised in financing projects at the
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project level and seek to define common issues and points of risk, solutions and risk mitigation strategies.
What are the international sources of financing? What are the different types of debt available?
Are project bonds a viable financing solution?
What is the government appetite for project financing?
How can equity and/or debt be utilized? What are the more pressing needs in local infrastructure?
Can the capital markets take on the associated construction risk?
How has the new APP law benefited the financing of projects?
Should institutional investors, specifically Afores, be more involved in infrastructure investment?
Moderated by:
Juan Carlos Machorro, Partner, Santamarina y Steta
Participants include:
Joaquin Tebar, Investment Officer, IFC
Francisco Jose Sarti, Director Financiero Concesiones México, Isolux-Corsan
João Parreira, CEO, Mota-Engil Latino America and CEO, Mota-Engil Mexico
Alfonso Navarro, Director Mexico, Acciona Concessiones
Juan Guichard, Director General, Invex Infraestructura
17:10-18:00
The Buy-Side’s Perspective: Investing in Mexico
This session of leading Afores and other institutional investors will set the context for the day’s discussions by
explaining how they believe returns can be maximized and risks managed, and identify the products that they
expect will continue to perform in their portfolios.
Where does Mexico fit in an environment of relative risk reappraisal and global volatility?
What are the most promising sectors? What are the most interested channels/products to access them?
With more than 8 billion pesos placed in CKDs in 2012, have they now become a good alternative for
investors in the local market. Will CKDs take a more central role in 2013?
What is the appetite for further investment in infrastructure debt securities?
Since June 2012, Afores were given permission to invest in commodity futures, options and swaps
contracts. How has this changed their investment approach?
How do local pension funds view structured finance deals?
Moderated by:
Luis Miguel González, Director General Editorial, El Economista
Participants include:
Luis Nicolau Gutierrez, Partner, Ritch Mueller
Jose Luis Garcia, Global Equity Research Analyst and Non-U.S. Equity Portfolio Manager, MFS
Enrique Solórzano, Director de Inversiones, Afore Sura
Keith Gardner, Head of Emerging Markets, Western Asset (WAMCO)
18:00
Cocktail Reception on the Patio of the Four Seasons
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