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Latin America Business News

IDB Partners with Banamex to Back Issuances of Debt Securities From Mexican Companies

  -IDB approves a $150 million partial credit guarantee facility for Banamex clients
  -Vinte is first to benefit from IDB-Banamex partnership

The Inter-American Development Bank (IDB) has approved a $150 million partial credit facility for Acciones y Valores Banamex, S.A. de C.V., a unit of Grupo Financiero Banamex and a leading Mexican arranger and placement agent of debt securities in the Mexican local capital market.

The new facility will provide partial credit guarantees for local and international debt issuances of Mexican entities arranged by Banamex. The facility will back debt securities of companies seeking to invest in projects that are climate and environmentally friendly, as well as projects to improve people’s housing and living conditions and help fund small and medium-sized businesses.

“This facility is part of our efforts to support the development of Mexico’s local capital markets and improve access to finance to companies,’’ said Daniela Carrera-Marquis, who heads the financial markets division at the IDB’s Structured and Corporate Finance Department.

“By partnering with Banamex, the IDB’s resources can benefit a wide range of issuers. Our partial credit guarantees will allow them to extend tenors, support new issuers or asset classes and gain access to institutional investors to finance projects that have an important social, environmental and economic impact in the country.”

The first company to benefit from the partnership is Vinte, Viviendas Integrales SAPI de C.V., a medium-sized Mexican real estate company focused on the low- and middle-income housing market. The new facility will provide as much as 200 million Mexican pesos in partial credit guarantees for one of several of the company’s corporate bonds under its 1 billion Mexican peso bond program.

The partial credit guarantees will support the company’s plans to diversify its funding sources, increase its debt tenor, and reach new investors in order to build 25,000 new dwellings for low- and middle-income families in the next five years.

The IDB’s partial credit guarantee facility will be available for Banamex for a three-year period, with an option to be extended for another three years. It is expected to provide partial credit guarantees for as many as nine issuers.

The facility is part of beyondBanking, an IDB program that promotes sustainable banking principles and practices in Latin America and the Caribbean.