Maria Ariza, CEO of BIVA (Bolsa Institucional de Valores), Mexico's second-largest stock exchange, has discussed the increasing appeal of Mexico's capital markets to investors. She emphasizes BIVA's strategy to create a more accessible and efficient market, particularly for medium-sized companies, by focusing on support, technology, and innovation. This approach has helped reduce entry friction for issuers, attracting nearly 50 new companies to the Mexican market and financing approximately MXN900 billion since BIVA's inception. Ariza also noted that the Mexican stock market has seen three years of record financing, with strengthened investor appetite and more competitive financing costs, particularly in debt issuances.
To attract foreign direct and portfolio investment, BIVA has focused on strengthening market liquidity through mechanisms like the maker-taker model and incorporating liquidity providers. These efforts aim to improve market depth, reduce spreads, and facilitate operations, aligning the Mexican market with global institutional investor standards. An example of this success is the Chilean company Molymet, which listed instruments on BIVA, showcasing the exchange's role as a regional connection point for capital. More than 105 issuers have listed instruments at BIVA.
In related news, Maria Ariza stated that the recent appointments of Maria del Carmen Bonilla as deputy finance minister and Angel Cabrera as head of Mexico's National Banking Commission are expected to accelerate the publication of new regulations for hedge funds in Mexico. These regulations are anticipated to significantly boost investment in the country's capital markets by providing a clearer legal framework for hedge fund operations. Ariza also mentioned BIVA's strong investor interest in a sale process that began at the end of the previous year.
Ariza, who has been CEO of BIVA since its inception nearly eight years ago, also sits on the boards of several companies, including AXA, Mac Hospitales, Grupo Bafar, Fibra Nova, and Ualá. She is also involved in investment committees for Nexxus Capital and Dux Capital, as well as various non-profit and civil society organizations. Her background includes extensive experience in the private equity sector, where she served as CEO of the Mexican Association of Private Capital (AMEXCAP) and held positions at Ictus Capital and NAFTA Fund, specializing in financing structures for high-growth companies.
Mexico's business and finance community is also actively promoting the country to global investors, with events like Mexico Investment Week in New York. Discussions during these events, including those involving Ariza, cover the state of Mexican capital markets, investor appetite, and opportunities in mergers and acquisitions, such as a surprise bidding war for Axtel and potential reforms to Mexico's Foreign Investment Law. The AMEXCAP Private Capital Day is also being held to strengthen capital markets in Mexico, further highlighting the country's efforts to attract capital.
