Quick Facts

Countries:
Where the impacts of the investment may be experienced.
  • Mexico
Banks:
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
  • Inter-American Investment Corporation (IIC)
Bank Risk Rating: FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Board Decision Date: 2017-07-11
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower or Client: ION Financiera, S.A.P.I. de C.V., Sociedad Financiera de Objeto Multiple E.R.
The holder of the loan, grant, or other investment.
Sectors:
The service or industry focus of the investment. A project can have several sectors.
  • Finance
Investment Amount (USD): $ 5.27 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.

Currency conversion note:
Bank reported Up to Mex$100 million
Converted using 2017-10-13 exchange rate.

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Primary Source

Original disclosure @ IIC website
Updated in EWS: 2017-10-13
Disclosure Date: 2017-06-08
ION Financiera
IIC-12112-01

Project Description
The purpose of the project is to support ION's first long-term corporate bond issuance of Mex$200 million in Mexico. This issuance is part of ION's Mex$500 million corporate bond issuance program to be registered in the Mexican Stock Exchange. The project will support ION's strategy to: (i) expand its SME lending portfolio; and (ii) extend its funding tenors and diversify funding sources by tapping capital markets and reaching a new base of investors. IIC's participation will strengthen ION's business plan of increasing its SME lending portfolio from Mex$30 million in 2016 to Mex$285 million in 2021. ENVIRONMENTAL REVIEW 1. Project Description: IIC's financing (the "Financing") will consist of a Partial Credit Guarantee ("PCG") of up to one hundred million Mexican Pesos (Mex$100 million) guaranteeing the first long-term issuance under ION's program. The Financing will not exceed the equivalent in Mexican Pesos to five million United States Dollars (US$5 million). 2. Environmental and Social Categorization and Rationale: FI-3 (low risk). 3. Environmental and Social Risks and Impacts: Sub-project environmental and social risks are most likely in the small industry segment, which represents building material manufactures to their construction business. ION will be required to manage these risks through the application of a set of environmental and social procedures, which will include development of an environmental policy, application of local law, confirmation of environmental permits, application of the IIC Exclusion List, and training at IIC's annual course on Environmental and Social Risk Management. Additionally, sub-loans will be capped with an individual client exposure of US$1 million.4. Mitigation Measures/E&S Action Plan:Development of an Environmental Policy and Procedure.
Investment Description
Contact Information
CONTACT For inquiries about this project contact divulgacionpublica@iadb.org. ACCOUNTABILITY MECHANISM OF IIC The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IIC)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IIC is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).