BBVA Increases ConCrédito’s Loan to MX$150 Million

BBVA Mexico has increased its loan to Gentera Group’s microfinance company ConCrédito from MX$50 million to MX$150 million. This expansion aims to enable the latter company to provide crucial financial support to female entrepreneurs in Mexico by offering them microloans.

This financial boost is expected to generate about 3,000 credit lines that could benefit 30,000 families. These microloans will be offered digitally, facilitating access for female microentrepreneurs and supporting the growth of their businesses while improving their financial conditions. ConCrédito already boasts a portfolio exceeding MX$3.8 billion, with over 90% of its clients maintaining up-to-date loan payments.

The Global Transaction Banking (GTB) unit of BBVA Mexico has managed this operation, emphasizing its focus on Environmental, Social, and Governance (ESG) criteria. The renewed credit line demonstrates BBVA Mexico's commitment to promoting social sustainability, addressing issues related to economic disparities and enhancing the well-being of individuals, says the bank.

This loan will carry an interest rate tied to the Interbank Equilibrium Interest Rate (TIIE) at 28 days, plus 215 basis points. The demand for this issuance exceeded the amount placed by a factor of 1.52.

The bond is backed by loans and falls under a program enabling ConCrédito to issue up to MX$3 billion with a five-year term. Both S&P Global Ratings and HR Ratings awarded this instrument the highest possible local rating, indicating its robust financial standing and credibility.

Bous Asesores acted as the structuring agent for this issuance, while Banorte Casa de Bolsa and Actinver Casa de Bolsa served as intermediaries for the placement. Monex Casa de Bolsa is the designated common representative for the bondholders.

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