49779 - MFP-SME Xepelin-ABL

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Summary of Investment Information

Project Number

49779

Company Name

DCM ABL Xepelin Mx Trust

Date SPI Disclosed

Apr 24, 2025

Country

Mexico

Region

Latin America and the Caribbean

Projected Board Date

May 30, 2025

Environmental Category

FI-2 - Limited

Status

Pending Signing

Last Updated Date

Aug 27, 2025

Department

Regional Industry FIG LAC & EUR

Industry

Financial Markets

Previous Events

Approved : Aug 26, 2025

Sector

Finance Companies

Additional Project Attributes

Blended Finance

Project Description

The proposed investment consists of 3-year (2-year grace) senior secured loan of up to US$20 million equivalent in Mexican Pesos (MXN), to a special purpose vehicle (the Trust). The Trust will hold assets pledged and serviced by Operadora Falcon, S.A.P.I. de C.V., SOFOM, E.N.R. (Xepelin Mx or the Company). In addition, IFC will mobilize US$20 million senior secured loan from Institutional Lenders and a US$5 million mezzanine tranche from Ameris Capital (Ameris), resulting in a mobilization ratio of 1.25:1. The Trust will be collateralized by a portfolio of eligible short- term corporate receivables from small and medium enterprises (SMEs) including Women-owned SMEs (WSMEs) in Mexico, as the sole repayment source. The purpose of the proposed IFC Investment is to support the Company's lending program to Small and Medium Enteprises (SMEs) in Mexico with at least 25% earmarked for eligible loans to women-owned or women-led SMEs (the Project).

Associated Advisory Engagement

Through IFC’s advisory services, IFC will help Xepelin strengthen its lending capacity and further enhance its value proposition to SMEs, including WSMEs. The gender inclusion team has worked with Xepelin to construct a baseline of the proportion of WSMEs within their client base. The team will further accompany Xepelin in the automation of classification by gender for new clients, by providing macro tools allowing for the scaling of information collection without burdening the client and underwriting process.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	20.0
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Straight Senior Loan	Loans to SME Borrowers
Straight Senior Loan	Loans to Woman-Owned SMEs

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

The most significant, expected Project-level outcome will be increased access to finance for MSMEs, including WMSMEs. Beyond this outcome, IFC anticipates the investment will promote competitiveness in the fintech space through demonstration and replication channel. The Project supports the proposed impacts of the Platform as it supports MSMEs and WMSMEs through an innovative company that uses technology-based solutions for financial inclusion.

IFC’s additionality through the Project is both financial and nonfinancial. Financial additionality will be provided in the form of financing structure, as IFC will offer financing with a longer term than is readily available in the market for a fintech company that has not reached breakeven and is expected to provide a PBI to incentivize Xepelin Mx to expand its WSME portfolio beyond the normal scope. Nonfinancial additionality will be provided in the form of standard setting, as IFC will play a key role in helping improve Xepelin Mx’s environmental and social practices and gender-focused strategy.

Indicator	Metrics	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Number of Outstanding Loans, SMEs	loans	Not Available	Not Available	Not Available
SME share of total loan portfolio	%	Not Available	Not Available	Not Available
Value of Outstanding Loans, SMEs	$	Not Available	Not Available	Not Available
Women-owned SME as a share of SME loan portfolio	%	Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

The Project consists of a loan to a special purpose vehicle serviced by Xepelin to acquire short term receivables originated to SMEs in Mexico, and has been categorized as FI-2, in accordance with the IFC's Sustainability Framework. The E&S risks and impacts of the Project are associated with its SME portfolio in sectors such as agriculture, manufacturing, commerce, construction, retail, and chemical sector and are expected to be middle to low in nature and mostly related to labor conditions, including Occupational Health & Safety (OHS) aspects. To mitigate such risks, the Project will not support SMEs involved in coal-related activities, activities in the IFC Exclusion List, and activities with higher E&S impacts and risks such as (a) involuntary resettlement, (b) adverse impacts on indigenous peoples, (c) significant impacts on the environment, community health and safety, biodiversity, cultural heritage, (d) retrenchment or (e) substantial occupational health and safety risks. . IFC’s applicable requirements for the Project will be the IFC Exclusion List and E&S laws in Mexico, IFC Performance Standard 2 on Labor and Working Conditions (IFC PS 2) and Life and Fire Safety (LFS) requirements for Xepelin.

The main E&S risks and impacts related to the project derive from the Company’s capacity to assess and manage E&S risks of the SME portfolio in line with the E&S requirements. Xepelin has an exclusion list in line with IFC Exclusion List but does not screen SME sub-projects against applicable E&S laws and regulations. The Company’s labor practices are largely aligned with Performance Standard 2 although certain written procedures still require updating. As part of the Project, the Company will develop procedures an environmental and social management system (ESMS) to screen SMEs against the IFC exclusion list, coal-related activities, higher E&S risk activities, and applicable host country laws and regulations. Xepelin will be required to: i) appoint an E&S officer; ii) develop an ESMS procedure; iii) provide E&S training to its staff; iv) update its labor policies and procedures in line with the IFC Performance Standard 2; and iv) submit a periodic report to IFC.

S.no	Title	Anticipated Completion Date
1	Appoint an E&S Officer	07/17/2025
2	Develop an ESMS	10/15/2025
3	Update HR policies	10/15/2025
4	E&S Training	01/13/2026

Contacts

For Inquiries About the Project, Contact

Operadora Falcon SA de CV
Santiago Cerilla
Head DCM Mexico
+525530377201
santiago.cerrilla@xepelin.com
Mexico City,Mexico
https://xepelin.com/

For Inquiries and Comments About IFC, Contact

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

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.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

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. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII 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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