IDB.News Releases. Nov 22, 2011. The Inter American Development Bank (IDB), and Nacional Financiera, S.N.C Institución de Banca de Desarrollo (Nafin) provided each a 30 percent partial credit guarantee to back a three-year public debt offering by Crédito Real, S.A.P.I. de CV, SOFOM E.N.R. (Creal)’s in the Mexican market.
The operation, conducted by the Financial Markets Division of the IDB’s Structured and Corporate Finance Department, underscores the Bank's commitment in creating opportunities for medium-sized companies to diversify and improve their sources of funding in the Mexican capital market. It also represents an important milestone for both the IDB and Nafin since it is the first time the two institutions partner to back a local bond issuance.
The partial credit guarantee was closed under a framework program signed by IDB and Ixe Casa de Bolsa, a market leader in the management and placement of debt issuances in the Mexican financial market. The program’s primary objective is to support local corporations to issue debt instruments on more competitive conditions and attract institutional investors.
The 400 million peso debt issuance by Creal, in the form of Certificados Bursátiles offered through the Mexican Stock Exchange, was well-received and successfully placed among investors, with demand exceeding three times the size of the offering. IDB and Nafin’s joint credit-enhancement enabled the issuance to receive HR AA and mx AA- local ratings from HR and Standard & Poor’s, respectively.
Crédito Real is one of Mexico’s leading group loans, durable goods and payroll lenders, making loans to the country’s underserved lower socio-economic segments. The company is present in all Mexican states, with a network of 60 distributers and 95 branches.
About the Structured and Corporate Finance Department
The Structured and Corporate Finance Department (SCF) leads all IDB's non-sovereign guaranteed operations for large-scale projects, as well as those linked to companies and financial institutions. SCF acts as a catalyst, helping engage third-party resources by partnering with commercial banks, institutional investors, co-guarantors and other co-lenders for projects with high developmental impact.
The operation, conducted by the Financial Markets Division of the IDB’s Structured and Corporate Finance Department, underscores the Bank's commitment in creating opportunities for medium-sized companies to diversify and improve their sources of funding in the Mexican capital market. It also represents an important milestone for both the IDB and Nafin since it is the first time the two institutions partner to back a local bond issuance.
The partial credit guarantee was closed under a framework program signed by IDB and Ixe Casa de Bolsa, a market leader in the management and placement of debt issuances in the Mexican financial market. The program’s primary objective is to support local corporations to issue debt instruments on more competitive conditions and attract institutional investors.
The 400 million peso debt issuance by Creal, in the form of Certificados Bursátiles offered through the Mexican Stock Exchange, was well-received and successfully placed among investors, with demand exceeding three times the size of the offering. IDB and Nafin’s joint credit-enhancement enabled the issuance to receive HR AA and mx AA- local ratings from HR and Standard & Poor’s, respectively.
Crédito Real is one of Mexico’s leading group loans, durable goods and payroll lenders, making loans to the country’s underserved lower socio-economic segments. The company is present in all Mexican states, with a network of 60 distributers and 95 branches.
About the Structured and Corporate Finance Department
The Structured and Corporate Finance Department (SCF) leads all IDB's non-sovereign guaranteed operations for large-scale projects, as well as those linked to companies and financial institutions. SCF acts as a catalyst, helping engage third-party resources by partnering with commercial banks, institutional investors, co-guarantors and other co-lenders for projects with high developmental impact.
