A couple things that Mexico can do to raise money on the global capital market is to use either debt capital or equity capital. Debt capital usually comes in the form of loans, while equity typically comes in the form of cash in exchange for stock ownership. One of the benefits for using debt is that a large amount of money can be raised without diluting equity. Debt financing usually involves an entity borrowing money from a lender and paying it back at a later date. Raising equity usually occurs when selling shares of stock to investors. The advantage of this method is that Mexico would not have to worry about regular interest payments on debt as well as fluctuation of exchange rates. The only downside is that selling shares of stock would result in the dilution of equity for Mexican firms. I would personally recommend debt financing that way Mexico would not be diluting the equity of their firms, while also being pressured to make sure that firms remain profitable in order to benefit the shareholders and continue to pay out dividends. However, if the value of the peso were to depreciate over the next two years, repaying the lender would become more challenging in which debt financing would actually be a huge liability.
A couple things that Mexico can do to raise money on the global capital market is to use either debt capital or equity capital. Debt capital usually comes in the form of loans, while equity typically comes in the form of cash in exchange for stock ownership. One of the benefits for using debt is that a large amount of money can be raised without diluting equity. Debt financing usually involves an entity borrowing money from a lender and paying it back at a later date. Raising equity usually occurs when selling shares of stock to investors. The advantage of this method is that Mexico would not have to worry about regular interest payments on debt as well as fluctuation of exchange rates. The only downside is that selling shares of stock would result in the dilution of equity for Mexican firms. I would personally recommend debt financing that way Mexico would not be diluting the equity of their firms, while also being pressured to make sure that firms remain profitable in order to benefit the shareholders and continue to pay out dividends. However, if the value of the peso were to
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