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Mexico's Banorte has announced plans to create two investment funds focused on energy and infrastructure. The bank said last week that the funds will have around $500 million each and they will invest in new infrastructure and energy projects.
Alejandro Valenzuela, Banorte's Managing Director, announced the plans last week at an event in Venezuela.
Mr. Valenzuela said that the funds will take advantage of the new reforms impulsed to attract private capital to invest in energy projects. It is estimated that the reforms will attract around $20 billion of private flows from 2016 on.
Mr. Valenzuela did not clarify when these funds will be on the road.
The Banco Mercantil del Norte ('The Northern Merchant Bank', branded as Banorte) is a major bank in Mexico, based in Monterrey. It is Mexico's largest bank still owned by local investors and it has a credit portfolio of around $33 billion.
Banorte is the primary subsidiary of Grupo Financiero Banorte, one of Mexico's largest and oldest financial institutions, which has been present in Mexico since 1899.
In less than 10 years, Banorte transformed itself from a regional bank, based mainly in the northern Mexico, to one with nation-wide coverage.