Goldman Sachs is set to invest in Mexico's newly opened energy sector, Reuters reported Tuesday.

The company's private equity arm has teamed up with Ainda, a Mexican consulting firm, to invest in energy and infrastructure, signing a deal to “identify, pursue, evaluate and make investments jointly,” according to a filing seen by Reuters.

Ainda would invest up to US$1.15 billion in projects with Goldman's Merchant Banking Division, with the latter putting up at least 50 percent of the total equity amount in joint projects, a source told Reuters.

The energy reform allows private companies to participate in the oil and gas industries for the first time since 1938, when President Alvaro Obregon nationalized the oil industry.

The decline in the price of oil has also negatively affected the income of the state-oil company, Pemex, reducing its capability of investing in production, leading to government to pursue private investment even more vigorously. 

As such, in September Mexico's finance ministry unveiled a new vehicle in September similar to a real estate investment trust called a Fibra E.

Reuters reported in November that Ainda plans to raise US$1.15 billion through a public offering of certificates for an infrastructure energy investment vehicle, and that vehicle can subsequently be converted into a Fibra E.

The filing specifying the joint investment between Goldman and Ainda is expected to be submitted to the Mexican stock exchange shortly.

Source: - http://www.telesurtv.net/english/news/Goldman-Sachs-to-Invest-in-Mexican-Energy-Sector-20160119-0015.html