IIC Approves Its Second Local-Currency Operation In Mexico
10/29/2007MX$150 million loan will enable Pure Leasing S.A. de C.V. to offer high value added solutions to its clients, mainly Mexican SMEs
Washington, D.C. – On October 30, 2007, the Inter-American Investment Corporation (IIC) approved a medium-term 150 million Mexican peso loan to Pure Leasing S.A. de C.V. (PLSA). The proceeds will help this leasing company expand its portfolio and diversify its sources of local-currency funding.
PLSA is a growing pure leasing company that offers financial services tailored to its clients’ needs. Support from the IIC will help PLSA expand its product range.
PLSA’s financial products include operating leases and structured loans. Most of the loan proceeds will be used to fund pure leases for small and medium-size companies in Mexico. From 70 to 100 clients are expected to benefit from the funding provided by the IIC over the life of the loan.
"Leasing is based on the idea that it is the use of assets that generates profits for a company, regardless of who owns them. On this basis, PLSA offers its clients—especially the smaller ones—products that maximize the use of their cash flows. Leasing is an ideal financing alternative for SMEs because it is hard for them to provide collateral or a credit history with commercial banks," said IIC Financial Institutions and Structured Finance Coordinator Carlos Roa.
The IIC will promote capital market development by carrying out a local-currency bond issue to fund this and other local-currency operations it has in Mexico.
The Inter-American Investment Corporation is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. It provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. The IIC’s mission is to promote the economic development of its regional member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. For more information on the IIC’s activities, please visit www.iic.int.
Contact: Carlos Roa/Rodrigo Navas
Telephone: (202) 623-3955