IFC Supports CAMESA’s Inaugural Bond to Boost Microfinance, Capital Markets in M...

Jun 2015
Mexico, June, 17 2015 - IFC, a member of the World Bank Group, has provided a guarantee to the first bond issued by Consorcio de Asistencia al Microemprendedor S.A. de C.V. (CAMESA) to support the company’s fundraising towards expanding its lending services to microfinance institutions in Mexico.

CAMESA raised 200 million pesos, or $13 million equivalent, through a two-year bond. This will be CAMESA’s first bond issuance in the Mexican capital markets. Through the bond, the company is looking to diversify its funding base and develop its name as a reputable issuer among local debt capital market investors, according to IFC.

IFC will guarantee up to half of the amount of the bond issued by CAMESA, assuring investors of full and timely debt service payment for that amount. With IFC’s guarantee the two-year bond received a local credit rating of AA- by Fitch Ratings and HR Ratings.

“We are pleased with the success of our first debt issuance, which will allow us to carry on with the expansion our financial services to Mexicans at the bottom of the pyramid,” said Federico Manzano, CEO of CAMESA.

IFC offers partial credit guarantees to help private sector companies attract new types of investors or to access the capital markets for the first time.

“Deep and liquid domestic capital markets are the foundations for long-term growth and a key source of financing for the local private sector,” said Jingdong Hua, IFC Vice President and Treasurer. “In Mexico, highly rated issuers with a strong capital markets track record are readily able to access the bond market. For new issuers, however, placing their first bond can be a challenge. CAMESA’s successful bond will help diversify its funding base and hopefully pave the way for future issuances.”

IFC’s strategy in Mexico focuses on supporting private sector investment to accelerate growth, improve competitiveness, promote social inclusion, and reduce poverty. In fiscal year 2014, IFC committed $519 million in 47 projects with microfinance institutions around the world. Since pioneering commercial microfinance in the early 1990s, IFC has continued to lead innovation in microfinance, using developments in technology, financial products, and policy to help financial institutions reach a greater number of people in a more cost-effective way.

Source : The FINANCIAL

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