The transaction will help the company expand its product offerings to small and medium enterprises (SMEs) and is designed to support the economic recovery from the COVID-19 health crisis.
The financing package is composed of a $58 million loan from IFC's own account, a $43.5 million loan from the IFC Managed Co-lending Portfolio Program, and a $15 million loan from the Canada-IFC Blended Climate Finance Program. Up to $40 million will be dedicated to leasing “climate-smart” equipment.
With this partnership, IFC and BBVA Leasing are supporting the sustainable growth and competitiveness of companies in Mexico, with a focus on the efficient use of resources, renewable energy, and clean transportation.
Ignacio de la Luz, BBVA Mexico's Chief Financial Officer, underlined the importance of this agreement, saying it strengthens a framework of close collaboration between IFC and the bank.
Gabriel Ramírez Landa, Director of the Bank of Companies and Governments of BBVA Mexico, said: “At BBVA Mexico we know the importance of companies for the economic development of the country.
Taking into account the current situation, BBVA Mexico will continue to be committed to the development of SMEs, which are powerful drivers of the country’s economy.
We are eager to continue accompanying them in their growth with solutions that allow them to get ahead.”
Ricardo Duhart Novaro, Director of Strategies and Solutions for Business Banking and Governments of BBVA Mexico, said:
"With this initiative we are supporting companies that require the use of mobile assets, including fleets, specialized equipment, and green solutions, through the financing of sustainable assets and energy efficiency.”
“We are very pleased to partner with BBVA Leasing to help bridge the large SME financing gap that remains prevalent in Mexico,” says Ary Naïm, IFC Country Manager.
“At the exit of this crisis, most SMEs will need to grow again, and climate investments will take on a whole new dimension, with help from the Mexican financial sector.”
SMEs account for 99 percent of all Mexican enterprises.
They are responsible for 52 percent of the country’s gross domestic product (GDP) and employ about 71 percent of Mexico’s workforce.
The SME Finance Forum estimates that the formal SME finance gap in Mexico is almost $164 billion (14 percent of GDP), with 31 percent of SMEs reporting a lack of access to finance as a major obstacle to growth.
This financing aligns with IFC’s Climate Implementation Plan to have climate investments reach 28 percent of its annual financing by 2020, and 35 percent by 2030.
It is also in line with the BBVA Group's strategy for climate change and sustainable development (Commitment 2025).
This plan seeks to promote sustainable financing, encourage the use of renewable energy, and support the reduction of emissions that contribute to global warming.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets.
We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries.
In fiscal year 2019, we invested more than $19 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org.
About BBVA Leasing
BBVA Leasing Mexico, through corporate banking, business banking and automotive banking, is dedicated to providing leasing solutions for productive corporate assets.
Its offerings cover mobility solutions (including light vehicles), transportation equipment, technology equipment, construction equipment, clinical diagnostic equipment and more specialized equipment, such as industrial machinery, railway equipment, and boats and aircraft for private use.
It offers solutions that address financing and operating requirements, with the support and operational and financial strength of the BBVA Group.