Summary of Proposed Investment
Project Number
7427
Company Name
Banco Bilbao Vizcaya-Mexico, S.A.
Date SPI Disclosed
Oct 15, 1996
Country
Mexico
Industry
Financial Markets
Status
Completed
Sector
Commercial Banking - General
Department
Regional Industry FIG LAC & EUR
Environmental Category
FI
Previous Events
Approved : Dec 17, 1996
Signed : Dec 24, 1996
Invested : Dec 27, 1996
Project Description
Summary Of Project Information (SPI)
| Project Name | Mexico-Banco Bilbao Vizcaya-Mexico |
| Region | Latin America and the Caribbean |
SectorFinancial Services
Project No07427
Projected Board DateNovember 15, 1996
Company NameBanco Bilbao Vizcaya-Mexico (BBV-Mexico)
Technical Partner and/or Major Shareholders
BBV-Mexico is a wholly-owned subsidiary of Grupo Financiero BBV*Probursa (BBV*Probursa), which is 63% controlled by Banco Bilbao Vizcaya (BBV) of Spain. IFC has a 0.53% interest in BBV-Mexico.
Project Cost Including proposed IFC investment
Up to US$110 million including (a) an up to US$80 million Restructuring Credit Line (RCL) to BBV-Mexico, and (b) an up to US$30 million Subordinated Convertible Loan (SCL) to BBV-Mexico. The RCL would have a tenor of up to ten years including a two year grace period. US$10 million of the RCL will be dedicated to the States of Chiapas and Oaxaca. The SCL would have a tenor of up to seven years with a bullet repayment, and would be convertible into common shares of BBV*Probursa.
Location of project and Description of site
Mexico
Description of Company and Purpose of Project
BBV-Mexico is Mexico’s ninth largest commercial bank offering a full range of banking and financial services to both corporate and retail clients. The Bank came under the control of BBV in 1995 following a large capital restructuring program designed in large part to re-capitalize BBV-Mexico following the rapid deterioration of its loan portfolio in the wake of the peso devaluation. Many of BBV-Mexico’s viable medium-scale corporate clients continue to suffer from the effects of the adverse economic environment prevailing since the devaluation. The RCL aims to assist BBV-Mexico in the financial restructuring of these enterprises by providing long-term funds not otherwise available to BBV-Mexico. In so doing, the RCL will assist these enterprises in restoring their operations to normal. IFC will play a role in the implentation of the RCL including project selection, appraisal and structuring. The SCL aims to improve the capitalization of BBV-Mexico through the injection of Tier II capital.
Environmental Category and Issues
This is a Financial Intermediary category project according to IFC’s environmental review procedure. Companies receiving financing under the project through BBV-Mexico will be required to comply with applicable Mexican environmental, health and safety requirements, and World Bank environmental policies and guidelines.
| Date SPI sent to PIC | October 15, 1996 |
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 676-0365
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