Markets could finance up to 70% of new Mexico City airport

High investor demand to fund a planned US$13 billion airport for Mexico's capital means the private sector could finance up to 70 percent of the project, versus an initial 42 percent, a source familiar with the situation told Reuters on Wednesday.

Mexico's finance ministry has said it will rein in spending next year as oil prices have swooned and production at ailing state oil giant Pemex has slumped, raising the chance of seeking more project financing from investors.

A hike in market participation could mean raising bond issuance for the project to around US$9 billion from an originally forecast of US$6 billion, with maturities of 10, 20 and 30 years, said the source