Chinese investor commits to Mexico energy fund
China-based Honghua Group, a manufacturer of land-based drilling equipment, has announced that it committed $150 million to the Sino-Mex Energy Fund, a new fund that targets projects in energy infrastructure, specifically in the exploration and production of oil and natural gas. The fund is reportedly seeking $5 billion in equity commitments.
P.M.I. Holdings BV, a subsidiary of PEMEX, the Mexican government’s official petroleum and natural gas company, is one of the fund’s limited partners and expects to partner with a number of Chinese enterprises through the firm.
The commitment comes on the heels of Mexico’s rescinding of a $3.8 billion high-speed railway deal that had been awarded to a Chinese-led consortium. But the deal has not appeared to damage relations between the nations, as Mexican President Enrique Peña Nieto recently announced that the two countries will set up a $2.4 billion investment fund to support infrastructure, min