22540 - Financiera Educativa de Mexico S.A. de C.V.

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Proposed Investment

Project Number

22540

Company Name

FINANCIERA EDUCATIVA DE MEXICO, S.A. DE C.V.

Date SPI Disclosed

May 10, 2005

Country

Mexico

Industry

other

Projected Board Date

Jun 13, 2005

Status

Completed

Sector

Other Non-Depository Credit

Department

Regional Industry MAS LAC & EUR

Environmental Category

Previous Events

Approved : Jun 27, 2005
Signed : Jun 28, 2005
Invested : Mar 22, 2006

Project Description

The project is to support the establishment of Financiera Educativa de Mexico S.A. de C.V. (“FINEM” or “the company”), a new specialized non-bank financial institution that will be established as a “sociedad financiera de objeto limitado” (SOFOL) and focus on financing the Mexican education sector. FINEM’s core business will be to provide peso denominated term loans to eligible Mexican privately-owned schools and higher education institutions, to help fund their expansion and infrastructure modernization programs. In addition, FINEM will provide advisory services or technical assistance in a wide range of managerial or technical disciplines, to help qualifying clients reinforce the quality of their management and become more viable and competitive firms. FINEM will initially target upper-secondary and higher education institutions and gradually extend its services across all segments of the education market.

The project aims to address the currently large gap between demand and supply of long-term financing for private education institutions in Mexico, and to contribute to improving the quality of infrastructure, education and management in the private education sector through investments and technical assistance.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	15.08
Equity	0.69

Development Impact

This project is expected to have a strong development impact in the following areas:
Increasing access to scarce long-term financing: with the exception of a few institutions that have access to donations, most private schools and universities are constrained in their modernization and expansion plans by the lack of alternative financing sources to cash generation as commercial bank lending to the sector is very limited. By providing long-term financing to eligible institutions to finance their expansion, the project will help improve access to upper-secondary and tertiary education in Mexico. By financing renovation and infrastructure modernization programs, it will also help improve the quality of higher education directly, by improving the quality of services offered, and indirectly, by increasing competition on quality standards.

Building capacity: by helping the less sophisticated institutions improve their financial and managerial capacities, it will help them become more viable and competitive, and contribute to the strengthening of the private education sector in Mexico;

Through the use of tuition receivables as collateral for loans, it could set the initial foundation for the securitization of tuition receivables in Mexico, hence supporting the creation of a new type of asset for local investors and capital market development.

Job creation: it will indirectly contribute to job creation in Mexico in school construction related activities and trade.

IFC will play the following critical roles in the execution of the project:
- assist in structuring the loan facility, bringing its global experience in appraising and structuring education and financial institution projects as well as special financing facilities, to complement the sponsor’s local experience;
- as a shareholder, lend additional credibility to a greenfield, pioneering project that is expected to have a strong development impact;
- assist FINEM in implementing best practices in terms of corporate governance from its very inception; and
- provide long-term funding that would otherwise not be available locally and help mobilize funds from other banks or multilateral agencies to widen the company’s funding sources, once the company is set-up.

This is a category FI Type 2 project according to IFC''s environmental and social review procedure. The company will be required to establish an environmental and social management system to ensure that investments comply with applicable host country environmental laws and regulations as well as applicable World Bank Group environmental, health and safety policies and guidelines; designate appropriate individuals to have responsibility for environmental and social issues; submit to IFC an environmental management plan; obtain clearance from IFC for any category A investment by the company; and submit to IFC annual environmental performance reports.
Location of environmental documents In locally affected community

Contacts

For Inquiries About the Project, Contact

Mr. Francisco Gonzales-Cos
General Manager
Financiera Educativa de Mexico S.A. de C.V.
Bosque de Alisos 45-A, Edificio Oriente
Col. Bosques de las Lomas
Tel. 9177 9380
E-mail: fgonzalezcos@finem.com.mx

This Summary of Project Information (SPI) is prepared and distributed to the public in advance of the IFC Board of Directors' consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC's activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. The following SPI is disclosed in accordance with IFC's Disclosure of Information Policy that went into effect September 1998.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Summary of Proposed Investment

Project Description

Sponsor / Cost / Location

Development Impact

Similar Projects

Contacts

Projects

Summary of Proposed Investment

Project Description

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

Board Approved IFC Investment

Location of Project and Description of Site

Development Impact

IFC's Expected Development Contribution

Environmental and Social Issues - Category

Press-Release

Related ESRS/ERS

Similar Projects

Contacts

Disclaimer