John Beckham, Managing Director, North American Development Bank (NADBank)
John Beckham, managing director of North American Development Bank (NADBank), spoke with Invest: about developing renewable energy and enhancing supply chains along the U.S.-Mexico border. “In 2024, we closed 16 projects along the border in water infrastructure, renewable energy, energy storage, clean transportation systems, and supply chain resiliency on both sides of the border,” he said.
What are some key highlights for NADBank over the past year?
We are headquartered in San Antonio and operate by investing in needed infrastructure along the United States-Mexico border. The demand for infrastructure investment has been high since the COVID pandemic. 2024 has been a success for the bank, growing our portfolio 10-12% to $1.2 billion in infrastructure assets, primarily on the Texas-Mexico border. That investment is consistent with our strategic five-year plan that reflects the demographic, economic, and cultural trends of the region, which are all vibrant. The relationship between the U.S. and Mexico is evolving, and there’s a lot at stake. A new equilibrium will be reached that will be beneficial for both countries. In 2024, we closed 16 projects along the border in water infrastructure, renewable energy, energy storage, clean transportation systems, and supply chain resiliency on both sides of the border.
How are you working to attract investors to expand your lending capacity to meet growing demand?
We have different initiatives in the U.S. and Mexican markets. In the U.S. market, we’ve been working with syndicates on club deals to attract investment into the energy sector. We focus on renewable and resilient energy. We work with international and U.S. commercial banks to fund energy storage solar projects throughout Texas and the border region. One of the strengths of the region is that there is a lot of sunlight, and it’s free. The sun is an excellent resource. There is some argument between renewable energy and traditional oil and gas. We focus on renewable energy, but believe a diversified energy portfolio is in everyone’s best interest. In Mexico, we have a vehicle called Zacate, which has long-term investors that will participate in our deals. We are in the process of updating Zacate into new regulations and bringing more pension fund investors for the Mexican market.
How are you working with U.S. and Mexican government agencies to navigate challenges, secure project funding, and find common goals?
An important new development is that a direct flight from San Antonio to Reagan National Airport launched service, which complements the direct services we already had to Mexico City, helping us physically meet and engage with our board of directors based in each of those capital cities. Since the new administration came to Mexico, we’ve had a series of meetings with our board members, resulting in a new degree of continuity. We’ve been meeting with new leadership in CONAGUA, the Mexican water commission, and the secretary of agriculture to pool our resources and coordinate and co-finance water infrastructure in Mexico. We met with the secretary of energy in Mexico to discuss positive developments in energy investment. In the United States, we’ve begun engaging our board of directors with the new administration, but there isn’t much to report yet. We had a meeting in February to discuss what we hope will be a $100 million water resiliency fund to help incentivize and invest money to water infrastructure on both sides of the U.S.-Mexico border to help conserve water resources.
How are you finding and acquiring top talent in your company?
Attracting top talent is always a priority. We’ve been successful in part because of our location in San Antonio. The city offers a quality lifestyle that combines well with our mission-driven work. San Antonio offers a diverse community, rich culture, rich history, and connectivity, working in an organization that is mission-driven to improve the quality of life of U.S.-Mexico border residents and help facilitate a prosperous U.S.-Mexico relationship. That combination works well for us. We have attracted people from Mexico, California, and the Southeastern United States.
How is NADBank engaging with the local community?
NADBank is one of the founding members of the San Antonio-Mexico Friendship Council, an organization that works closely with the consul general of Mexico and provides community services for Mexican expats, such as first services, counsel services, and emergency services. Unfortunately, the trafficking of undocumented immigrants results in many deaths. SAMCO funds help the consul general take care of the relatives of affected families. SAMCO also promotes cultural events like Mexico Independence Day and the overall nature of how San Antonio is where Mexico and the U.S. meet to work and talk. We are also involved in United Way campaigns and Catholic Charities, doing work to help less fortunate citizens in the San Antonio area. We also participate in the San Antonio Chamber of Commerce.
What is your outlook on San Antonio’s growth and economy?
We are happy to be in downtown San Antonio. Many interesting projects are happening, including many new residential developments. Project Marvel is a major development, even if not all of it is completed. It’s an enormous and ambitious project with long-term potential. Texas continues to grow, and the economy in San Antonio has managed a steady long-term trend line compared to other cities in Texas, with strong business planning. The connectivity of San Antonio, especially in air travel, has improved and is demonstrated by the launch of the new airport terminal. New direct flights enhance business operations.
What are NADB’s top priorities over the next few years?
We just completed the first year of our five-year plan. We want to grow from $1.2 billion in assets to $1.5 billion. We don’t just want to grow the portfolio for the sake of growing. We specifically invest in water infrastructure for clean, reliable water service, diversifying water sources, and conservation, especially in the Rio Grande Valley. A key goal for this year is to launch a special water fund, up to $100 million, which will help incentivize further investment. We will continue to invest in energy, which is the biggest operating expense. We have to have reliable, cheap, and renewable energy that is abundant along the U.S.-Mexico border. Lastly, we will continue to invest in the resiliency of our supply chain for clean and efficient ports of entry and agile transportation.
