MARKETS
The S&P / BMV IPC was down 1.4% for the week, affected by some weak macroeconomic data and Donald Trump’s decision to increase tariffs on steel imports to 50%. Meanwhile, the Mexican peso appreciated another 0.8% to MXN$19.16/USD, and the yield of the 10-year M-Bono was down 14 bps to 9.19%.
The S&P / BMV IPC’s top gainers for the week were: PEÑOLES * (+16.9%), OMA B (+4.7%) and GENTERA * (+3.7%). On the other hand, the main losers were: GRUMA B (-8.4%), BBAJIO O (-8.4%) and BIMBO A (-5.4%).
ISTED COMPANIES
Xinfra Fibra E completed a MXN$5.148 billion equity offering on BIVA to finance the acquisition of the Huinalá power plant, a 142 MW natural gas combined-cycle facility located in Pesquería, Nuevo León. Xinfra Fibra E sold 257.4 million CBFEs at MXN$20.0 pesos each.
Alpek announced its strategic decision to cease operations at its Cedar Creek facility in Fayetteville, North Carolina by July 31st, 2025. Alpek acquired this site in 2001, which has an installed capacity of 170,000 tons of PET resin and approximately 35,000 tons of rPET flake. The company will be able to generate approximately US$20 million in annualized savings on a run-rate basis, effective by 2026, with this closure.
Grupo BMV announced the elimination of the listing fee, as well as a 50% discount on the first maintenance fee, for new companies under the “simplified listing scheme”. As far as we know, there are no companies yet listed under this scheme.
Grupo Aeroportuario del Centro Norte once again outperformed other airport operators in Mexico. It reported that total passenger traffic advanced 6.9% YoY in May, with domestic traffic rising 5.1% and international traffic up 19.5%, driven by strong traffic at its flagship and expanded Monterrey airport. Grupo Aeroportuario del Pacífico’s total passenger traffic increased by a more modest 2.6% YoY to 5.17 million passengers in May 2025. Domestic traffic rose 4.7%, while international traffic declined 0.2%. The company obtained a 5-year MXN$3.375 billion line of credit with Banamex with monthly interest payments and variable interest rate of 28-day TIIE-28 plus 54 bps. GAP will use these funds to repay the bank loans with Banamex for MXN$2.5 billion and BBVA for MXN$875 million. Meanwhile Grupo Aeroportuario del Sureste’s total passenger traffic was down 2.2% YoY to 5.7 million passengers in May 2025, mainly as a result of a 3.0% decrease in Mexico and a 3.4% fall in Colombia, which was partially mitigated by a 1.3% increase in Puerto Rico. Declines in tourism to Cancun seem to be driving the poor results.
Volaris’s total passenger traffic was up 4.2% YoY to 2.5 million in May 2025, resulting from a 5.4% increase in domestic traffic and a 0.8% rise in international one. ASMs rose 9.0% YoY, while RPMs grew 3.5%. The load factor decreased 4.3 percentage points to 81.8%. CEO Enrique Beltranena attributed the capacity growth to strategic adjustments aimed at aligning with customer demand, emphasizing a focus on maximizing unit revenue performance by prioritizing close-in fares over-load factors. The stock has been among the worst performing in Mexico this year, as declining load factors have weighted on profitability.
Cemex priced a US$1.0 billion subordinated notes offering with no fixed maturity at 7.200% initial interest, subject to resets and step-ups, with call options starting in 2030. The offering is expected to close on June 10th, 2025, pending customary conditions. The Notes were priced at 100% of face value.
Orbia Advance Corporation repurchased an aggregate principal amount of US$424.4 million of its outstanding 4.0% Preferred Notes due 2027, equivalent to 84.87% of the outstanding amount. Holders received US$1,000 per each US$1,000 of face value plus accrued interest.
Genomma Lab Internacional successfully placed MXN$1.2 billion in Cebures in two tranches: i) LAB 25 for MXN$700 million at a variable rate of 28-day TIIE + 70 bps with a six-year maturity; and, ii) LAB 25-2 for MXN$500 million at a variable rate of 28-day TIIE + 77 bps with a seven-year maturity. Both tranches received “AA+(mex)” credit ratings from Fitch Ratings and “HR AA+” from HR Ratings. The company will use proceeds to refinance existing debt, including the full early redemption of the LAB-23 issuance on June 11th, 2025.
Grupo Hycsa announced that one of its subsidiaries secured a MXN$2.7 billion contract, including VAT, to build Federal Highway 57 interchange, the “La Pitahaya” interchange on the Eastern Bypass of San Luis Potosí, and a 19.4-kilometer section of the same bypass.
Fibra Educa plans to conduct a primary private subsequent offering of CBFI’s in Mexico and international markets. Conditions are still subject to approval from the holders’ assembly. Fibra Educa will use proceeds to support its development and expansion, including the diversification of its investor base.
Fibra Storage has paid the STORAGE 21-2V green bond amounting to MXN$332 million, including accrued interests, which matured on June 3th, 2025. The Fibra used a new MXN$350 million loan from Banorte, maintaining an LTV below 19%.
Planigrupo Latam acquired the remaining 30% stake in “Paseo Puebla” Shopping Center, bringing the company’s stake to 100%. No amount was provided.
OTHER COMPANIES
Pemex has initiated an institutional reorganization to align with its new status as a vertically integrated State-Owned Enterprise under recent energy legislation. The restructuring, approved by its Board on May 22nd, 2025, and published on May 30th, aims to streamline operations by eliminating redundancies in administrative areas such as commercialization, planning, human resources and hiring of services. The plan includes a controlled hiring scheme and the cancellation of vacant positions, resulting in projected savings of approximately MXN$3.5 billion in 2025 and MXN$1.3 billion in 2026.
Bitso has launched a dollar transfer service in Mexico and Argentina, allowing users to send and receive cash to and from the United States. Customers can deposit or withdraw funds via ACH for US$2.99 or via Wire for US$11.99, with a 0.17% fee.
ECONOMIC
Economists predict 50-bps reduction in Banco de Mexico’s key interest rate in the next monetary policy meeting, according to the latest Citi Mexico Expectations Survey. The median forecast for the policy rate at year-end 2025 remains at 7.50%, unchanged from the previous survey, while the projection for year-end 2026 has been lowered to 6.88%, from 7.00%. GDP growth expectations remained at 0.1% for 2025 and 1.5% for 2026. Headline inflation expectations for year-end 2025 have increased to 3.90%, from 3.85%, whereas core inflation remains at 3.90%. For year-end 2026, headline inflation is now projected at 3.75%, slightly down from 3.77%, with core inflation unchanged at 3.70%. The peso is expected to close 2025 at 20.50 per U.S. dollar, a revision from the previous 20.69 forecast, and to end 2026 at 20.90, down from 21.00.
The Monthly Indicator of Private Consumption (IMCP) decreased by 0.2% MoM in seasonally adjusted terms in March 2025, according to INEGI. This decline was driven by a 0.5% contraction in domestically produced goods and services, while imported goods increased by 0.4%. The IMCP was up 1.2% YoY, according to original data, which included a 1.6% rise in both domestic and imported goods and services.
Gross fixed investment grew 0.3% MoM (seasonally adjusted) in March 2025, according to INEGI. This increase was driven by a 0.8% rise in construction spending, while investment in machinery and equipment declined by 0.7%. Gross fixed investment decreased 0.2% YoY (original data) influenced by a 0.1% reduction in construction investment and a 0.4% decline in machinery and equipment.
The Consumer Confidence Index (CCI) increased by 1.2 points to 46.7 in May 2025, INEGI reported, mainly driven by a 2.2-point rise in the perception of the current suitability for purchasing durable goods. However, the CCI experienced a slight 0.2 points annual decline, primarily due to a 1.1-point decrease in expectations regarding the country’s economic situation over the next 12 months.
The Global Indicator of Business Confidence (IGOEC) registered 48.7 points in May 2025 (seasonally adjusted data) with a slight 0.1 pts MoM increase and a 5.9 pts YoY decline, INEGI reported. The indicator has remained below the 50-point threshold for the third consecutive month, indicating persistent caution among business leaders.
Remittances were down 12.1% YoY to US$4.8 billion in April, the sharpest drop since September 2012, driven by an 8.1% decrease in transaction volume and a 4.4% reduction in the average remittance amount, according to Banco de Mexico. Remittances declined 2.5% YoY to US$19.0 billion over the January-April 2025 period.
Total loans of the Mexican banking sector grew 11.6% YoY in April, reaching MXN$7.8 trillion driven mainly by credit to financial entities (24.9%), consumer loans (15.1%), and corporate loans (13.4%), while the government portfolio showed a slight decline (0.8%), according to the CNBV. The banking system’s NPL ratio remained nearly unchanged at 2.05% while coverage fell to 155.45%, from 156.82%. The system’s monthly net profits increased 7.3% YoY to MXN$100.3 billion, with a L12M ROE of 18.01%, from 18.08%.
Light vehicle sales declined 0.4% YoY to 119,961 units in May, INEGI reported. Cumulatively, light vehicle sales increased 0.9% to 593,284 units over the January-June period.
CETES auction: 28-day CETES -2 bps to 8.10%; 91-day CETES –5 bps to 8.09%; 175-day CETES -8 bps to 8.04% and 707-day CETES -6 bps to 8.49%.
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