First ever issuance under the recently approved Banamex Capital Markets Guarantee Facility
MEXICO CITY, Mexico – The Inter-American Development Bank (IDB) supported a MXP200 million ($15 million) bond issuance by Viviendas Integrales S.A.P.I. de C.V. (VINTE) today through a partial credit guarantee. This is the first usage and first issuance under the $150 million Banamex Capital Markets Guarantee Facility recently approved in May 2012.
This unique transaction will raise funding and increase debt tenors for VINTE—a medium-sized real estate company focused on providing low- and middle-income housing in Mexico, much of which is retrofit with environmental technologies to reduce the carbon footprints of the residences. The end-beneficiaries of IDB’s partial credit guarantee include up to 25,000 low- and middle-income households over the next five years.
“This transaction underscores how the IDB, through its beyondBanking program, can achieve a triple bottom line contributing not only to the deepening of capital markets but also promote more affordable housing and green technologies all at the same time. We hope to do similar transactions under the Banamex Facility with equal success,” said Daniela Carrera-Marquis, Chief, Financial Markets Division.
This is VINTE’s third issuance, and the IDB guarantee provided a more competitive price than previous issuances. As a result, the bond issuance was oversubscribed by 1.6x and a large number of institutional investors participated.
“Given the PCG and the seal of approval that IDB brings, the issuance received a higher rating and lower pricing, thus attracting several new players. We are proud to partner with the IDB and look forward to similar transactions in the future that allow us to achieve our financial and social mission,” Domingo Valdes, CFO VINTE
“We are pleased with this facility as it has attracted an interesting base of investors which have made this transaction so successful. There are several potential new issuers that can also take advantage of the partial credit guarantee to tap into the capital markets." commented Francisco Romano Smith, Director Local Debt Capital Markets, Banamex.
About the IDB
The Inter-American Development Bank is the principal source of financing for economic and social development projects in Latin America and the Caribbean. The IDB offers its financial products and technical resources to reduce poverty and inequality in a sustainable way. The Structured and Corporate Finance Department is responsible for non-sovereign guarantee operations, including loans and partial credit guarantees. The department’s financial markets strategy incorporates the beyondBanking program, which seeks to encourage financial intermediaries in the region to adopt socially and environmentally sustainable, and governance practices through loans, risk mitigation products and technical assistance.
- Peter Bate