Project Description
Financiera Educativa de Mexico SA de CV (“Finem” or “the Company”) is a specialized non-bank financial institution that focuses on financing the education sector in Mexico. IFC previously committed financing facilities to support the initiation of Finem’s business, aimed at providing peso denominated loans to privately-owned schools and higher education institutions to fund their expansion and modernization programs. In addition, Finem also provides 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. In addition, IFC provided Finem with an additional loan facility aimed at supporting Finem’s student loan business, which started in 2007. Finem’s main purpose is to originate loans at the university level.
The Project presented herein is a $10 million equivalent loan and equity facility 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. Finem plans to initially target upper-secondary and higher education institutions and gradually extend its services across all segments of the education market.