Partial Credit Guarantee Program (IIC-NAFIN)

For inquiries and comments to IIC, contact:
IIC’s Communications Group
E-mail: divulgacionpublica@iadb.org

For project inquiries, including environmental and social questions related to an IIC investment, please contact the client or the IIC using the contact information provided above. In addition, project affected communities have access to the IIC Independent Consultation and Investigation Mechanism.
Tel:+1 (202) 623-3952
Fax: +1 (202) 312-4057
Address: 1300 New York Ave. NW Washington, DC. USA. 20577
E-mail: mecanismo@iadb.org or MICI@iadb.org

Project Number: 
ME3418A-01
Expected Consideration Date by the Board: 
03/30/2005
Date Posted: 
03/02/2005
Company: 
Nacional Financiera, S.N.C.
Financing Requested: 
Sector: 
Financial Services
Location: 
Mexico
Country: 
Scope Objective: 
The IIC seeks to work with Nacional Financiera, S.N.C. (NAFIN) to improve the risk profile of bond placements (emisiones bursátiles) to be carried out by non-bank financial intermediaries and small and medium-size companies, by obtaining better financing terms and conditions for these companies. By introducing a new product such as partial credit guarantees, the IIC also seeks to boost financial intermediation and foster savings in the local financial market. The IIC's participation also opens the door to long-term financing in local currency for companies that are not necessarily exporters.
Environmental Review: 
The Partial Credit Guarantee Program will be a Category III project according to the IIC's environmental and labor review procedure because moderate, specific negative impacts may result that can be mitigated by implementing well-defined, generally recognized solutions.

As part of the evaluation process, the eligible issuers will be subject to an environmental review performed to ensure they comply with the IIC’s environmental and labor review standards. NAFIN has already sent staff to the IIC's environmental training workshop for financial intermediaries.