IIC Supports The Development Of The Securities Market In Mexico
10/31/2004WASHINGTON, DC - On October 29, 2004, the Inter-American Investment Corporation (IIC) approved a "garantía bursátil" or bond issue guarantee in Mexican currency for Cablemás S.A. de C.V's (Cablemás) second bond issue. Cablemás is the second largest provider of cable television services in México. This transaction consists of a guarantee equivalent to US$9.7 million (approximately 15% of the bond issue) granted by the IIC to Cablemás through Nacional Financiera (NAFIN), which will guarantee the remaining 15% of the issue amount.
IIC participation will improve the risk profile for bond issue guarantees and make it easier for Cablemás to obtain better financing terms and conditions. NAFIN's participation will improve the company's rating from A+ (Mex) to AA (Mex), and the IIC's participation will increase demand from institutional investors thanks to the IIC's AA (international) rating. By supporting the issue, the Corporation will foster the expansion of Internet services as well as competition in the telecommunications sector, thus helping close the digital divide. Bond issue guarantees are a product that can be easily replicated in other markets with similar needs. The IIC expects that this project will prompt other companies to tap into this type of financing for their investment needs.
The Inter-American Investment Corporation is a multilateral financial institution that is part of the Inter-American Development Bank 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 borrowing member countries by stimulating 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, visit its Web site at www.iic.int.
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