Inter-American Development Bank approves $150 million loans for Banamex clients

By Susanna Moon

Chicago, May 10 - The Inter-American Development Bank said it approved a $150 million facility for Acciones y Valores Banamex, SA de CV to provide partial credit guarantees for local and international debt issuances of Mexican companies.

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, according to a bank press release.

The bank's partial credit guarantee facility will be available for Banamex for three years, with an option to be extended for another three years. It is expected to provide partial credit guarantees for as many as nine issuers.

"This facility is part of our efforts to support the development of Mexico's local capital markets and improve access to finance to companies," Daniela Carrera-Marquis, who heads the financial markets division at the bank's structured and corporate finance department, said in the release.

"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 CV, a medium-sized Mexican real estate company focused on the low- and middle-income housing market. The facility will provide as much as Ps. 200 million in partial credit guarantees for one of several of the company's corporate bonds under its Ps. 1 billion 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 release said.

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

Banamex is a unit of Grupo Financiero Banamex and is an arranger and placement agent of debt securities in the Mexican local capital market.

Inter-American is a regional development bank in Latin America and the Caribbean. It is based in Washington, D.C.

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