MARKETS
The S&P / BMV IPC was up 1.2% over the week, in line with US indexes, as sentiment continued to improve after the US delayed the implementation of 50% tariffs on European imports and the US Court of International Trade blocked for a moment the majority of Trump’s tariffs. Meanwhile, the Mexican peso remained stable at MXN$19.32/USD, and the yield of the 10-year M-Bono was down 9 bps to 9.33%.
The S&P / BMV IPC’s top gainers for the week were: ALFA A (+8.1%), ALSEA * (+6.2%) and LAB B (+5.3%). On the other hand, the main losers were: ASUR B (-6.7%), CUERVO * (-4.7%) and TLEVISA CPO (-3.0%).
LISTED COMPANIES
Fibra Uno (FUNO) placed a MXN$12.7 billion sustainability-linked unsecured bond in two tranches: MXN$3.7 billion maturing in 2028 with an interest rate of TIIE + 125 bps, and MXN$9.0 billion maturing in 2032 with an interest rate of MBono + 225 bps. Fibra Uno will use proceeds to prepay the FUNO 15 and FUNO 21-2X bonds, extending its debt maturity profile while aligning with its goal to certify at least 26.6% of its portfolio under LEED and EDGE standards by 2027. The issuance received credit ratings of AAA(MEX) with stable outlook from both Fitch and HR Ratings.
Quálitas maintained its leadership in the Mexican auto insurance market, with a 31.7% share of written premiums and a 35.8% share of earned premiums, according to the latest auto insurance industry report. Quálitas recorded a combined ratio of 85.7% in 1Q25 (vs. 87.3% in 1Q24), outperforming the industry’s 87.4% (vs. 92.6% in 1Q24).
Arca Continental opened its largest global distribution center in Tonalá, Jalisco, through a MXN$1.4 billion (~US$73 million) investment. The new facility spans 14,200 square meters and supports 1.25 million physical boxes, over 40,000 pallets, and 245 routes to serve more than 40,000 clients. It is expected to create 1,200 direct and indirect jobs.
Soriana plans to achieve double-digit growth in its Julio Regalado summer discount campaign despite tighter consumer spending in Mexico. The retailer will offer promotions like 3-for-2 deals and expand its private label presence, aiming to appeal to price-sensitive shoppers. Meanwhile, competitors like La Comer have also launched their summer campaigns, expecting strong participation despite a challenging retail environment.
Fibra Prologis announced an increase of its unsecured sustainable credit facility to US$500 million, from US$400 million, with an accordion feature that allows for an expansion of up to US$1 billion, subject to lender approval. The facility has an initial maturity of May 29th, 2028, with two optional one-year extensions. The interest rate is currently at 125 bps over the applicable benchmark rate. Additional terms include KPI-based pricing adjustments of ±2 bps and an unused commitment fee of 25 bps, which represents a 5 bps improvement over the previous facility. Prologis also secured a US$300 million term loan, with a one-year term extendable for up to two additional years. It also carries a 125 bps spread and will be used to refinance existing short-term debt, enhancing the maturity profile.
Gentera obtained a new MXN$1 billion credit line from Banorte, while its subsidiary Banco Compartamos’ existing credit line with Nacional Financiera was increased to MXN$15 billion, from MXN$10 billion, and its credit line with Banco del Bajio was raised to MXN$450 million, from MXN$300 million.
Médica Sur announced that its Board of Directors has appointed Dr. Octavio González Chon as its new CEO, effective May 26th, replacing Dr. Carlos Arellano Quintana. Dr. González Chon has a 28-year career at Médica Sur, holding various leadership positions in clinical and hospital management areas. He has served on the Board of Directors for over 20 years, is a member of the Corporate Practices Committee, and has participated in various relevant corporate governance committees.
The Mexican Bolsa launched a US dollar futures mini-contract with a US$1,000 value, equivalent to 1/10th of the value of the traditional contract, to make it accessible to retail investors.
Orbia repurchased 90.06% of its 1.875% Senior Notes due 2026 for an aggregate principal amount of MXN$540.4 million. The company offered US$1,000 (which included a US$970 tender offer payment and a US$30 anticipated payment) for each US$1,000 of principal amount.
OTHER COMPANIES
BBVA Mexico announced its plans to invest more than MXN$100 billion in the country over the 2025-203 period in technology and infrastructure, according to Carlos Vila, its President. Priorities include a customer-centric approach, a drive toward sustainability, lending growth, particularly in the corporate segment, and the creation of capital and value, as well as innovation.
Shell sold its Mexican gas station business to Iconn, the company operating the 7-Eleven and Petro Seven chains in the country, according to local newswires. The deal includes fuel import permits, 47 operated gas stations, 92 distributions sites, 11 adjacent convenience stores, and a fleet management platform.
TRADE AND ECONOMICS
In its 1Q25 quarterly report, Banco de México lowered its 2025 GDP growth projection to 0.1%, from 0.6%, with a range of -0.5% to 0.7%, while the 2026 estimate was cut to 0.9%, from 1.8%, with a range of 0.1% to 1.7%. The main reasons for this adjustment include reduced domestic demand, lower oil production, persistent investment weakness, and potential negative effects from new US trade policies. Inflation projections for 2025 and 2026 remained unchanged at 3.3% and 3.0%, respectively. Banco de Mexico pointed out in both the 1Q25 Quarterly Report and in the Minutes that “the current inflation scenario will allow the institution to maintain the reduction cycle in the key interest rate, but maintaining a restrictive stance”.
Foreign direct investment (FDI) increased 5.4% YoY to a record level of US$21.4 billion in 1Q25, according to the Economy Ministry. Reinvestments declined 40.2% YoY to US$16.6 billion, new investments surged by 165% YoY to US$1.59 billion, while intercompany accounts comprised the remainder. Sector-wise, manufacturing dominated with 43.2% of total inflows, followed by financial services (24%) and mining (10%). The US was the main source, contributing 38.7% of total FDI, followed by Spain (15.0%), the Netherlands (8.3%), Australia (5.9%), and Germany (3.7%).
Mexico registered a US$88 million trade deficit In April 2025, according to INEGI. Exports rose 5.8% YoY (oil -13.2%; non-oil +6.6%) to US$54.3 billion while imports (oil +47.0%; non-oil -4.2%) declined 1.2% to US$54.4 billion.
Mexico posted a US$7.6 billion current account deficit in 1Q25 representing 1.8% of GDP, compared to the US$22.21 billion deficit (4.7% of GDP) recorded 1Q24 Banco de México reported. This performance was mainly due to a US$1.5 billion surplus in the balance of goods and services, a US$23.3 billion deficit in the balance of primary income and US$14.2 billion surplus in the balance of secondary income.
Construction activity increased by 0.7% MoM in March 2025 based on seasonally adjusted data, INEGI reported, which was the first positive monthly variation since June 2024. However, the sector experienced a significant 14.5% YoY contraction based on original data, accumulating 11 months with a downward trend.
Formal negotiations between Mexico, the US and Canada for the USMCA revision will begin at the end of September or beginning of October, according to Economy Minister Marcelo Ebrard.
CETES auction: 28-day CETES -3 bps to 8.12%; 91-day CETES –10 bps to 8.14%; 182-day CETES -4 bps to 8.12% and 364-day CETES -4 bps to 8.33%.
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