IIC And Corporación Metropolitana De Arrendamientos, S.A. De C.V. Sign A Partial Credit Guarantee For A Bond Issue
10/20/2005Mexico City (Mexico) – On October 18, 2005, the Inter-American Investment Corporation (IIC) and Corporación Metropolitana de Arrendamientos, S.A. DE C.V. (Cormet) signed a credit guarantee and an issue certificate whereby the IIC will provide a guarantee for a bond issue of up to 120 million pesos that Cormet is placing on the Bolsa Mexicana de Valores.
The partial guarantee for this issue enhanced Cormet's issue rating, making it more attractive for institutional investors, chiefly investment and pension funds. The partial guarantee is the first to be offered by the IIC wholly in local currency; it will be granted as bonds are offered to and purchased by investors. Both the issue and the IIC loan, which will be disbursed if and when the guarantee is called, are denominated in local currency. This operation supports the development of the securities market and the availability of financing for the small and medium-size companies that make up Cormet's target market. This operation is being carried out under the partial credit guarantee program with NAFIN (Nacional Financiera S.N.C.).
The signing ceremony took place in Mexico City. Mr. Eduardo Tapia, General Manager, signed for Cormet; signing for the IIC was Mr. Carlos Roa, Senior Investment Officer.
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.
Contact: Jacques Rogozinski
Telephone: (202) 623-3901