IDB Invest, a member of the IDB Group, provided $20 million in financing to Hifin Solution, S.A. de C.V. (Hifin), the financial arm of the company Hitec Global Holding Limited (Hi-Tec Group), to finance the acquisition of high-precision machines among micro, small and medium-sized companies in Mexico (MSME). Grupo Hi-Tec is the leading distributor in Mexico of high-precision, computer numerical control machinery used to improve manufacturing processes.
The financing will allow Hi-Tec Group to increase Hifin's credit portfolio, so that it can offer better credit solutions to its MSME client base. Through these financing, clients will be able to purchase or lease computer numerical control machines. The investment in a new technological platform will also be financed to optimize Hi-Tec's credit and collection processes. The financing will have a tenor of five years.
Small and medium enterprises in Mexico generate 36 percent of the country's gross domestic product and 74 percent of employment. The use of this type of specialized machines allows manufacturers to increase their productivity, by reducing production time while maintaining product quality. In addition, the high-precision machinery generates less waste of materials and greater homogeneity of output. It will also allow entrepreneurs to reduce part of their large capital expenditures, since these machines are reprogrammed and adapted to changes in manufacturing processes, production standards or other evolving business needs.
This transaction reinforces IDB Invest's ability to support MSMEs through financial intermediaries. Facilitating financing for MSMEs, in the current circumstances in which the impact of COVID-19 on the credit markets is growing, is now more important than ever.
This operation is expected to potentially contribute to two of the United Nations Sustainable Development Goals (SDGs): Decent work and economic growth (SDG 8) and Industry, innovation and infrastructure (SDG 9).
Se espera que esta operación contribuya potencialmente a dos de los Objetivos de Desarrollo Sostenible (ODS) de Naciones Unidas: Trabajo decente y crecimiento económico (ODS 8) e Industria, innovación e infraestructura (ODS 9).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $12.1 billion in asset management and 333 clients in 24 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About Hi-Tec Group
Hi-Tec Group is a Mexican company founded in 1992 dedicated to the commercialization and service of numerical control machine tools (CNC) in the areas of chip removal and sheet transformation. With more than 28 years of experience, Hi-Tec Grupo, through its different lines of business, is the leading provider of high-performance computerized numerical control (CNC) machine tools, tooling and accessories for the precision machining industry in the various industrial segments in Mexico and Spain. They represent the leading manufacturers in the industry worldwide, in order to offer an extensive line of innovative products and solutions to the needs and requirements of their clients