Company name

Mezzanine Mexico Uno, S.A.P.I. de C.V. SOFOM, ENR

Project number

11818-02

FI-2 operations are those where the risk potential is considered medium: the FI’s current or future portfolio consists of or is expected to consist of, business activities that have potential limited adverse environmental or social risks or impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures; or includes a very limited number of business activities with potential adverse environmental or social risks or impacts that are diverse, irreversible, or unprecedented.

E&S category
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FI-2

Country

Mexico

Sector

Financial Institutions

Status

In implementation

Disclosed date

10/27/2016

Projected date at which a project will be put forward for the Board of Executive Directors’ approval.

Projected board date
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12/13/2016

Approval date

12/13/2016

Signed date

09/28/2017

Sponsoring entity

N/A

Team leader

Gutierrez Gutierrez, Martha Maria

Investment type

Financing requested

N/A

Syndicated amount

N/A

Financing amount

USD $ 20,781,400

Currency

MXN

Project scope and objective

The objective of the project is to increase access to finance, and in particular to mezzanine products, for medium-sized Mexican companies with growth potential. To that end, Mezzanine Mexico Uno, S.A.P.I. de C.V. SOFOM, ENR (“MMU”) will provide mezzanine finance to companies that are seeking new or different financing options from those traditionally offered in the local financial market, to support medium and long-term growth opportunities and improve productivity.

Through this project the Inter-American Investment Corporation (“IIC”) will provide a senior loan (revolving credit line) to MMU for up to MXN 420 million (approximately US$23 million). The expected size of MMU is of MXN 2,100 million (approx. US$115 million), estimated to be reached through loans to be provided by the IIC, the International Finance Corporation (“IFC”) and other senior lenders. The IIC will participate in a co-financing agreement with IFC and other senior lenders to provide funding to MMU, which in turn will offer mezzanine financing to medium-sized Mexican companies. Vector Partners, S.C. will serve as the manager of MMU. It is expected that MMU will have a life of 8 years including a 3 year investment period, both of which will have two 1-year extension option.

The project is aligned with the IDB Country Strategy with Mexico as it seeks to increase the financing level available for medium-sized companies through the support of financing alternatives to expand their access to credit. Moreover, the project is consistent with IIC’s business plan which establishes that the IIC will selectively promote projects related with investment funds that contribute to development, for instance, by supporting funds that provide long-term financing to medium-sized companies with growth potential.

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Environmental and social review

IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. Any gaps with respect to the IDB Invest Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) provided below.

ENVIRONMENTAL AND SOCIAL REVIEW

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Contact information

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Client Contact

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IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

COUNTRY OFFICES

IDB Invest Country Offices