08 February 2024
BBVA México Closes to USD353 million in capital raising and working capital loan deals in the first phase
BBVA Mexico’s Corporate and Investment Banking area (CIB) successfully completed its first commercial tour through the main Asian countries—China, South Korea, Japan and Singapore. Visits to the headquarters of Asian corporations resulted in the closure of 21 deals, to begin with, which will be operated in Mexico through the affiliates of companies already present today in the national territory, like KIA, Hyundai Transys, HL Mando, Xusheng, Kuka Home and Lizhong, and others. More than a hundred more investment and cooperation initiatives are underway with other Asian companies.
The deals closed in this initial stage involve managing approximately USD353 million in capital raising and working capital loans. BBVA will also support clients with products and services that assist them in their day-to-day financial resource management processes--cash management, payroll, payment dispersal, currency management, and trade finance, among others, expediting their entry and the expansion of their activities in the Mexican market.
"as a leading company in this country, it is essential to establish and strengthen commercial ties with top Asian companies"
According to Álvaro Vaqueiro Ussel, CEO of Corporate and Investment Banking at BBVA Mexico, "as a leading company in this country, it is essential to establish and strengthen commercial ties with top Asian companies, to support them in strengthening their operations in Mexican territory and facilitate the attraction of new investment, taking advantage of synergies with the nearshoring phenomenon we are seeing today. We want to be their strategic allies in Mexico and support them in their expansion plans."
The commercial visit involved members of BBVA CIB's Asia team. Javier Sacristán, Director of Corporate and Investment Banking Strategy at BBVA Asia, stated, "BBVA's leadership in Mexico and its presence in Asia allows us to provide the best local capabilities and expertise to Asian multinationals, providing service in their language, within their time zone, and specialized products in their sector."
the country’s trade deficit with the Asian region grew by 62.84% between 2020 and 2023 (data as of November)
Trade between Mexico and the Asian region has grown substantially in recent years: according to figures from Banco de México, the country’s trade deficit with the Asian region grew by 62.84% between 2020 and 2023 (data as of November), so forming alliances with companies in the region to boost their activities in Mexico is a valuable opportunity. To promote the attraction of foreign investment to our country, these types of visits will be carried out regularly.
The deals closed to date correspond to 12 Asian companies, mainly in the automotive sector, ranging from the manufacturing of rims, chassis, and auto parts to car brands already being marketed in Mexico. In other sectors, deals were also inked with entities engaged in technological, telecommunications, agriculture, and home furniture manufacture.
One of BBVA Mexico’s central missions is to be an ally in the growth strategies of both domestic and international companies, and help attract more foreign capital to Mexico, contributing to the growth of the industry in the areas where it is established, promoting infrastructure growth, and generating local jobs. Comprehensive management by different BBVA global teams is one of the organization’s competitive advantages in attracting this capital to Mexico.
Grupo BBVA is present in more than 25 countries worldwide, and in the Asian market, it has a presence in eight countries in the region. Between 2011 and 2021, the Asian zone has generated 60% of global economic growth and one out of every two million dollars of investment, according to BBVA Research figures, and this share is expected to increase to 65% between 2017 and 2027.