On March 1, 2025, Mexican railway operator Ferromex announced its return to the Mexican bond market with a two-part bond issuance scheduled for May.
This will be the company’s first bond offering since 2021, aimed at raising funds primarily to refinance existing debt.
According to securities filings, Ferromex plans to raise up to MXN 6.5 billion (approximately USD 316 million), consisting of a target amount of MXN 5.5 billion and an additional MXN 1 billion through an overallotment option. The issuance will be divided into a 3.5-year floating-rate bond and a 7-year fixed-rate bond. The bond issue will be underwritten by HSBC, Inbursa, and Santander. Both S&P Global and Fitch Ratings have assigned local AAA ratings to the bonds.
Ferromex’s return to the Mexican bond market reflects the company’s positive outlook for future economic conditions, and simultaneously presents numerous opportunities for Chinese investors and enterprises. First, Ferromex’s bond issuance opens new avenues for Chinese investors interested in Mexico’s infrastructure sector, especially in the context of the Mexican government’s plan to invest MXN 157 billion (approximately USD 7.7 billion) in railway projects during 2025. Additionally, as Mexico expands and modernizes its railway network, demand for rail equipment, technology, and related services is expected to increase significantly. Chinese enterprises, with substantial expertise and competitive advantages in railway construction, equipment manufacturing, and technical services, are well-positioned to grow their presence in Mexico and strengthen bilateral economic cooperation. Notably, the Mexican government plans to construct over 3,000 kilometers of passenger railway in the coming six years, further expanding market demand and creating greater opportunities for Chinese enterprises. Thus, Ferromex’s bond issuance not only optimizes its own financial structure but also provides fresh prospects for Chinese investment and collaboration in Mexico’s infrastructure sector.