CII-NAFIN: Supply Chain Order Financing

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Project Number: 
ME1161A-01
Expected Consideration Date by the Board: 
03/05/2003
Date Posted: 
02/19/2003
Company: 
Nacional Financiera, S.N.C.
Financing Requested: 
Sector: 
Financial Services
Location: 
Country: 
Scope Objective: 
Participation in risk in favor of the financial institutions participating in the IIC-NAFIN Guarantee Program, with Nacional Financiera, S.N.C. (NAFIN), a Mexican development bank and a leader in providing financing to small and medium-size enterprises that supply public sector agencies and first-tier private companies.

The program for participating in risk will provide access to working capital financing for small suppliers of first-tier companies; this will be accomplished through financial institutions (banks) that will provide funding to small enterprises in the form of loans to finance orders. The banks will absorb 50% of the risk, and NAFIN, through Trust 1148-O set up for this purpose, will guarantee 50% (20% of the Trust funds will be contributed by the IIC and 30% will be directly from the Trust’s own resources) of the loans to small suppliers of first-tier companies operating in a variety of productive sectors throughout Mexico.
Environmental Review: 
In accordance with NAFIN regulations, financing will not be provided to companies that do not comply with Mexican environmental and labor standards. NAFIN has agreed to send appropriate representatives to IIC’s environmental training workshop for financial intermediaries in order to gain a better understanding of the IIC’s environmental and labor standards.