Mon, Jan 19 11:19 AM EST
reuters.com
MEXICO CITY, Jan 19 (Reuters) - The Mexican stock exchange is planning to launch a product that could allow investment in energy market infrastructure, a senior official at the bourse said on Monday.
Jose Manuel Allende, the stock exchange's deputy director general in charge of planning and promotion, said the product would be similar to real estate investment trusts (REITs) and local instruments known as structured equity securities (CKDs), and could allow companies to list infrastructure like pipelines.
Allende said at an event in Mexico City the idea was to create a basis for the product in Mexican legislation, which would need the approval of the national banking regulator and the finance ministry. He said he hoped the go-ahead could be granted later this year.
According to Allende, the planned product would be like a master limited partnership, a kind of publicly traded limited partnership which does not pay income tax.
Mexico's government, which recently abolished a 75-year-old state oil and gas monopoly, hopes that opening up the market to private investors will boost flagging crude output and spur faster growth in Latin America's second-biggest economy.
(Reporting by Cyntia Barrera; Editing by James Dalgleish)
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