China-Mexico fund invests $140m in Citla Energy

4/20/2016 Financial Times

Energy -electricity_transmission_linesNearly 18 months after its inception, a $1.2bn China-Mexico private equity fund (CMF) managed by a World Bank unit has made its first investment.

The $140m investment, in US-backed Citla Energy, is the latest private equity foray into the Mexican oil and gas sector, which is being opened up to private investment after eight decades under state control in a bid to get capital flooding in and ramp up Mexican oil production that has been sliding sharply since a 2004 peak, writes Jude Webber in Mexico City.

“With this first investment, in Citla, we are fulfilling the CMF’s objective to bring substantial risk capital to support attractive investment projects,” Cesar Urrea, head of the CMF, said in a statement. “We look forward to continuing to invest in new equity or mezzanine in projects that help maximise the impact of the reforms and their impact on the country’s social and economic growth.”

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