PROJECT

Projects

Summary of Investment Information

Project Number

31569

Company Name

FINAE, S.A.P.I. DE C.V., SOFOM, E.N.R.

Date SPI Disclosed

Jul 28, 2015

Country

Mexico

Region

Latin America and the Caribbean

Projected Board Date

Sep 21, 2015

Environmental Category

FI-3 - No Impact

Status

Completed

Last Updated Date

Jun 12, 2021

Department

Regional Industry FIG LAC & EUR

Industry

Financial Markets

Previous Events

Approved : Sep 15, 2015
Signed : Sep 30, 2015
Invested : Oct 23, 2015

Sector

Finance Companies

Project Description

FINAE S.A.P.I de C.V, Sociedad Financiera de Objeto Multiple, E.N.R is a non-regulated, non-bank financial institution incorporated in 2006 offering exclusively student lending products to students attending Mexico’s private universities. It combines commercial operations with a strong social orientation. Its innovative approach to education finance is a replicable model that has the potential to improve access to tertiary education in the Country and across other emerging markets.

FINAE’s growth potential is large however limited by the obstacles of the funding alternatives available in the Country, where they are required to provide a ~ 1.25x security coverage ratio to obtain financing. By providing an unsecured credit line, IFC will allow the Company to grow its portfolio at a much faster pace.

The proposed project entails an unsecured peso denominated A Loan for up to MXN 130 million (US$8.3millionequivalent); 5years tenor, including a 2year grace period.

Associated Advisory Engagement

N/A

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation