MICROCAPITAL BRIEF: International Finance Corporation (IFC) Provides 50% Credit Guarantee to $13m Bond Issuance of Mexican Microfinance Institution (MFI) Consorcio de Asistencia al Microemprendedor (CAMESA)

Consorcio de Asistencia al Microemprendedor (CAMESA), a Mexico-based, deposit-taking microfinance institution (MFI), recently raised MXN 200 million (USD 13 million) through its first bond issuance to support the expansion of its lending services. The transaction is backed by the International Finance Corporation (IFC), a member of the US-based World Bank Group, via a credit guarantee under which IFC up to half amount of the bond for CAMESA if the MFI is unable to do so.

Jingdong Hua, IFC’s vice president and treasurer, explained the need for guarantee as follows:“ in Mexico, highly rated issuers with a strong capital markets track record are readily able to access the bond market. For new issuers, however, placing their first bond can be a challenge”[1].

As of March 2015, IFC reported total assets of USD 90.7 billion and return on assets of 1.5 percent. As of March 2015, CAMESA reported total assets of MXN 1.97 billion (USD 127 million), return on assets of 3.46 percent and return on equity of 18.7 percent.

By Caroline Zhu, Research Associate

About Consorcio de Asistencia al Microemprendedor (CAMESA)

Consorcio de Asistencia al Microemprendedor (CAMESA), a Mexican microfinance institution (MFI), was established in 2005 to provide financial services to low-income individuals. CAMESA is part of Consejo de Asistencia al Microemprendedor (CAME), a Mexican MFI that was established in 1985. In December 2009, CAMESA received authorization by the Banking and Securities Commission of Mexico to operate as a regulated, deposit-taking non-banking financial institution. As of December 2014, CAMESA operated through 226 branches in 30 Mexican states with approximately 326,000 customers. As of March 2015, CAMESA reported total assets of MXN 1.97 billion (USD 127 million), return on assets of 3.46 percent and return on equity of 18.7 percent.

About International Finance Corporation

The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, offers loans, equity investments, advisory and risk mitigation services, and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2014, IFC has 184 member countries that drive its policies and approve disbursements. As of March 2015, IFC reported total assets of USD 90.7 billion and return on assets of 1.5 percent.

Sources and Additional Resources:

[1] The FINANCIAL news: “IFC Supports CAMESA’s Inaugural Bond to Boost Microfinance, Capital Markets in Mexico,” http://ifcext.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/955601B60AFBCDCF85257E67006D2F53?OpenDocument

[2] IFC Project Database: “CAMESA PCG,” http://ifcext.ifc.org/ifcext/spiwebsite1.nsf/651aeb16abd09c1f8525797d006976ba/57a7ac84001b1e4f85257d6c0071605a?opendocument

MicroCapital Universe Profile: Consejo de Asistencia al Microemprendedor, S.A. de C.V., SOFIPO (CAME)

MicroCapital Universe Profile: International Finance Corporation

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