From left to right: Francisco Martínez, Coverage; Facundo Piña, CFO; Alejandro Gutiérrez, Trader; Xavier Avila, Head of Derivatives Latam; Adolfo Hegewisch, Legal & Compliance; Jorge Mier, COO; Marliz Mejía, CEO; Christiana Riley, former CEO Americas; Jorge Sánchez-Lara, co-head ICG Latam; Cyntia Soto, PA to Marliz Mejía; Carlos Rodríguez, Coverage
After 60 years in the region, as Global Hausbank, Deutsche Bank has refocused its strategy for Mexico, re-entering the Mexican market through a broker-dealer to be able to offer FX and interest rate derivatives locally.
As Mexico’s peso continues to fluctuate against the US dollar amid a recent rate-hiking campaign to fight inflation, “we are helping clients hedge FX and interest rate risks,” notes Marliz Mejia, Chief Executive of the bank’s Mexico office, housed in Mexico City’s Torre Virreyes skyscraper. As an example, “a Mexican corporate can issue a US dollar bond to tap the international markets. Their liability and coupons are in USD but their revenues are in Mexican pesos. In this case we can issue a cross-currency swap to help them hedge the risk of the dollar/MXN rate,” Mejia explains.
Nearshoring opportunities
Nearshoring is gaining traction as the US cuts its reliance on Chinese goods. The trend is expected to bolster Mexican shipments north of the border by US$34bn annually, according to Banorte.
“With companies coming here to install factories, you will have manufacturing services that will require broad infrastructure including energy, data centres, roads, etc.,” Mejia reflects, adding that Deutsche Bank will help fund this new manufacturing ecosystem as it develops.
The enlarged Mexican office will also work to provide corporate treasurers with tailored solutions to help them expand their operations. These firms will include both German clients working with the bank globally, and new Mexican and foreign customers.
