The transaction consists of a revolving, uncommitted credit facility to be provided by IDB Invest to Megacable Holdings S.A.B. de C.V. and its subsidiaries (“Megacable”), for an amount of US$20 million (the “Transaction”). IDB Invest will purchase from and discount to the supplier’s credit rights payable by Megacable, previously confirmed by the latter, through an eligible electronic platform.
Megacable is a Mexican cable operator and provider of internet and phone service. Its supply pool in Mexico is comprised of over 5,000 suppliers, mostly Micro, Small, and Medium-sized Enterprises (MSMEs).
Through this Transaction, IDB Invest seeks to facilitate access to financing to Megacable’s MSMEs suppliers in Mexico, through the discount or monetization of credit rights arising from the sale of goods and/or services of MSMEs suppliers to Megacable.