MICROCAPITAL BRIEF: Financiera Independencia, a Mexico-based Microfinance Institution, Sells $200m in Senior Guaranteed Notes to the International Market

Financiera Independencia, a Mexico-based microfinance institution (MFI) that is listed on the Mexican Stock Exchange, has announced that it has successfully placed USD 200 million in senior guaranteed notes in the international market. The notes have a five-year maturity and pay an annual interest rate of ten percent. The notes have been rated BB- by both Standard & Poor’s and Fitch rating agencies.

According to the press release, “Net proceeds from the notes offering will be used mainly to reduce the amounts outstanding under certain of our revolving credit lines and for general corporate purposes.”

“This successful transaction, which constitutes the first international debt offering by a microfinance institution in Latin America, will bring us one step closer to achieving our medium term goal of diversifying our funding sources so that no single institution represents more than 25 percent of the company’s funding,” commented Noel Gonzalez, Financiera Independencia’s Chief Executive Officer.

Global investment banks, Bank of America, Merrill Lynch and Morgan Stanley, acted as joint bookrunners in this transaction.

By: Christine Chang, Research Associate

About Financiera Independencia:

Founded in 1993, Financiera Independencia is a Mexican microfinance institution traded on the Mexican Stock Exchange (BMV: FINDEP). As of December 31, 2009, Financiera Independencia has a total outstanding loan balance of MXP 4.8 billion (USD 380 million), operates 199 offices in 143 cities throughout 31 of Mexico’s 32 federal entities and has a total labor force of 9,643 people.

Additional Resources:

PR Newswire: Financiera Independencia Announces Successful Bond Offering for US$200 million in the International Markets, March 23, 2010: http://www.prnewswire.com/news-releases/financiera-independencia-announces-successful-bond-offering-for-us200-million-in-the-international-markets-88950682.html

MicroCapital Universe: Financiera Independencia: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Financiera+Independencia

MICROCAPITAL BRIEF: Financiera Independencia, a Microfinance Institution (MFI) Located in Mexico, Will Submit Request to Receive Banking License, March 2, 2010: https://www.microcapital.org/microcapital-brief-financiera-independencia-a-microfinance-institution-mfi-located-in-mexico-will-submit-request-to-receive-banking-license/

MICROCAPITAL BRIEF: Financiera Independencia, a Mexican Microfinance Institution, Completes $65m Offering to Fund Acquisitions of Financiera Finsol and Finsol Brazil, February 9, 2010: https://www.microcapital.org/microcapital-brief-financiera-independencia-a-mexican-microfinance-institution-completes-65m-offering-to-fund-acquisitions-of-financiera-finsol-and-finsol-brazil/

MICROCAPITAL BRIEF: Eton Park Capital Management Announces Plans to Invest $54.5m in Mexican Microfinance Institution Financiera Independencia, December 22, 2009: https://www.microcapital.org/microcapital-brief-eton-park-capital-management-announces-plans-to-invest-545m-in-mexican-microfinance-institution-financiera-independencia/

MICROCAPITAL.ORG STORY: Financiera Independencia (Independencia) Announced Increase in Line of Credit With Government-Backed Sociedad Hipotecaria Federal (SHF) From Ps. 600 Million (USD 45.2 Million) to Ps. 700 Million (USD 52.7 Million), September 29, 2009: https://www.microcapital.org/microcapitalorg-story-financiera-independencia-independencia-announced-increase-in-line-of-credit-with-government-backed-sociedad-hipotecaria-federal-shf-from-usd-452-million-to-usd-million-usd/

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