33270 - E Factor Network

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Summary of Investment Information

Project Number

33270

Company Name

E Factor Network, S.A. de C.V.

Date SPI Disclosed

Jun 20, 2013

Country

Mexico

Region

Latin America and the Caribbean

Projected Board Date

Aug 22, 2017

Environmental Category

C - No Impact

Status

Active

Last Updated Date

Jun 24, 2018

Department

Equity Portfolio Management

Industry

Financial Markets

Previous Events

Approved : Sep 11, 2017
Signed : May 31, 2018
Invested : Jun 22, 2018

Sector

Virtual lending, P2P, crowdfunding

Project Description

eFactor Network S.A.P.I. de C.V . (“EFN”) is privately owned company registered in Mexico. EFN offers an Internet platform that enables electronic factoring services for participating suppliers who wish to discount account receivables. Other EFN platform participants include banks which provide financing of receivables and approved corporate buyers which provide payments of receivables on maturity. A related party, eFactor Diez S.A.P.I. de C.V. Sofom ENR (“EFD”) operates as a trade finance intermediary to on-board new platform participants and offer other value added services (EFN and EFD, collectively “EFactor” or the “Company”).

The Project will support further expansion in the Mexican e-factoring market and offering other financial products, including supporting Mexican suppliers exporting goods and services to the US and Mexican corporate buyers with cross-border suppliers in the US, Canada and various emerging market countries in Latin America .

Associated Advisory Engagement

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	5.0

Development Impact

IFC's investment will make Mexican electronic factoring market more competitive, contributing to more efficient transactions, cost reduction, and better use of working capital for participating SMEs in the supply chain. SMEs will benefit by: a) improving financial liquidity for their operations and improved working capital; b) increased certainty of payments; c) lower financing costs by getting access to a larger set of financial institutions; d) multiplier effect, in which SMEs can also improve the financial liquidity of their own supply chain.

E&S Category Rationale / Risks and Mitigation

With no infrastructure owned by EFactor, the key E&S risks and impacts in this project will be in the management of EFactor's human resources, leased spaces, and equipment, and those risks and impacts are expected to be low. EFactor will be required to develop and document a grievance mechanism for its workers, and otherwise to manage its facilities, workers, and contractors in compliance with IFC Performance Standards.

Contacts

For Inquiries About the Project, Contact

eFactor Network S.A.P.I. de C.V.
Mr. Hector de la Garza Ramos
CEO
+52-81-8248-0800

Col. Del Valle 66620 Mol del Valle, Local 60San Pedro Garza Garcia, N.L., Mexico, CP 66220
www.efn.com.mx

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2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

Local Access of Project Documentation

For inquiries about the Project please contact the Company.

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

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Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

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CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. Its purpose is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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