The Bank is 97% owned by Grupo Financiero Banorte (“GFNorte”), a publicly traded company in the Mexican Stock Exchange and Latibex. GFNorte is the 4th largest financial conglomerate in Mexico and through its various business lines and subsidiaries serves more than 13.7 million clients.

The proposed IFC investment is an equity investment in Banorte, which is subject to the authorizations of IFC’s and Banorte’s Board and Mexican banking regulators.

150.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	150.0

* These investment figures are indicative

Banorte is headquartered in Mexico City and Monterrey. As of March 2009 it operated 1,070 branches and 4,135 ATMs across Mexico.

- Expand the Bank’s presence in SME Finance;
- Expand the Bank’s presence in other priority sectors like agribusiness and housing (low and medium-income);
- Support the Bank’s activities in infrastructure finance; and
- Greater presence in climate change and sustainability initiatives.

- Long term partnership with IFC that may provide a competitive advantage for the Bank in Climate Change and Sustainability initiatives;
- Support in adopting the Environmental and Social Standards as a differentiation strategy as well as developing a plan to reduce its own footprint; and
- Catalyst in mobilizing additional resources and help enhancing the client’s image and credibility in international financial markets.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. IFC analyzed the FI portfolio and determined the Applicable Performance Requirements based on an analysis of the potential Social and Environmental risks associated with it.

The Applicable Performance Requirements are: The IFC FI Exclusion List; The applicable National Social and Environmental Laws and regulations; and the IFC Performance Standards. IFC will appraise the FI’s labor practices according to the IFC’s Performance Standards 2: Labor and Working Conditions and review the capacity of the FI to manage social and environmental risks. The IFC will review the bank''s Social & Environmental Management System (SEMS) and, if necessary, suggest upgrades to ensure that the SEMS meets applicable requirements and cover all relevant financing operations.

Based on the review, the project will be required to: (i) Upgrade the Social & Environmental Management System (SEMS), prior to subscription, to the satisfaction of IFC; (ii) Identify responsible, qualified persons to manage and implement the SEMS; (iii) Commit to implement the SEMS, to ensure that its investments are in compliance with the Applicable Performance Requirements; (iv) Demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions; and (v) Submit a periodic report to IFC as per a format to be provided by IFC.