Summary of Proposed Investment
Project Number
24909
Company Name
Banco del Bajío, S.A., Institución de Banca Múltiple
Date SPI Disclosed
Apr 21, 2006
Country
Mexico
Industry
Financial Markets
Projected Board Date
May 25, 2006
Status
Completed
Sector
Commercial Banking - SME Finance
Date Revised SPI Disclosed
Jul 18, 2007
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : Jun 6, 2006
Signed : Jun 23, 2006
Invested : Dec 21, 2006
Project Description
The proposed project consists of an equity investment and a standby line of credit to Banco del Bajio, S.A. (Bajio or the Bank), with the objective of supporting the expansion and consolidation of the Bank’s operations in Mexico.
Banco del Bajio is a regional bank with significant presence in the northern, western and central regions of Mexico. The Bank is one of the most dynamic niche financial institutions and the 8th largest bank in Mexico in terms of assets; it focuses on three principal business lines: SMEs, agribusiness, and commercial banking. In recent years, the bank has diversified into high growth segments like mortgages and consumer loans.
Leon-based Bajio is majority owned by Mexican investors with Spanish bank Banco Sabadell holding a 20% stake in the company. Since 1994, when the Bank initiated its operations, the network has grown significantly. As of December 31, 2005 total assets amounted to $3.69 billion, up from $463 million in 1994. Bajio currently employs close to 1,242 people in Mexico, compared with 25 in 1994, and the network is rapidly growing: Bajio ended December 2005 with 88 branches and plans to open more than 20 branches a year over the next decade in central and northwestern Mexico.
Banco del Bajio is a regional bank with significant presence in the northern, western and central regions of Mexico. The Bank is one of the most dynamic niche financial institutions and the 8th largest bank in Mexico in terms of assets; it focuses on three principal business lines: SMEs, agribusiness, and commercial banking. In recent years, the bank has diversified into high growth segments like mortgages and consumer loans.
Leon-based Bajio is majority owned by Mexican investors with Spanish bank Banco Sabadell holding a 20% stake in the company. Since 1994, when the Bank initiated its operations, the network has grown significantly. As of December 31, 2005 total assets amounted to $3.69 billion, up from $463 million in 1994. Bajio currently employs close to 1,242 people in Mexico, compared with 25 in 1994, and the network is rapidly growing: Bajio ended December 2005 with 88 branches and plans to open more than 20 branches a year over the next decade in central and northwestern Mexico.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr. Joaquin Dominguez, Chief Financial Officer
Av. Manuel J. Clouthier No. 508
Col. Jardines del Campestre
Leon, Guanajuato 37128
Mexico
Tel: (52 477) 710-4646 main
Fax: (52 477) 773-4698
jdominguez@bb.com.mx
Av. Manuel J. Clouthier No. 508
Col. Jardines del Campestre
Leon, Guanajuato 37128
Mexico
Tel: (52 477) 710-4646 main
Fax: (52 477) 773-4698
jdominguez@bb.com.mx