Mexican SOFOMs Alliance for Sustainability Bond (IDBI-14880-01)

Countries
  • Mexico
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • IDB Invest (IDBI)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 24, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
new Special Purpose Vehicle
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 18.38 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IDBI website

Updated in EWS Jun 12, 2024

Disclosed by Bank Apr 26, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The Project consists of the subscription of a senior bond in local currency (MXN) issued in the Mexican public market by a new special purpose vehicle ("SPV") (Issuing Trust BCONJCB 24) incorporated in Mexico. The bond is structured as an "Asset Backed Security", which is backed by a portfolio of segregated loans from four originators (Program Participants)--underlying collateral is primarily integrated loans granted by the participating SOFOMs to debtors in the agricultural and agro-industrial sector in Mexico. The selection of both the originators and administrators of these portfolios and the eligible assets complies with broad criteria defined by the Trusts Instituted in Relation to Agriculture ("FIRA"). These criteria cover the evaluation from a loan origination and servicing perspective of the Participants, coupled with the credit risk criteria of the underlying loans and other credit quality items of the securitized loans.

The issuance to be subscribed by IDB Invest will have the following characteristics: (i) revolving period of 18 months (from the moment of issuance), during which the vehicle may acquire additional credit rights; (ii) issuance term of up to 5.5 years (66 months); and (iii) monthly interest payment.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The Project consists of the subscription of a senior bond in local currency (MXN) issued in the Mexican public market by a new special purpose vehicle (“SPV”) (Issuing Trust BCONJCB 24) incorporated in Mexico. The bond is structured as an “Asset Backed Security”, which is backed by a portfolio of segregated loans from four originators (Program Participants)—underlying collateral is primarily integrated loans granted by the participating SOFOMs to debtors in the agricultural and agro-industrial sector in Mexico. The selection of both the originators and administrators of these portfolios and the eligible assets complies with broad criteria defined by the Trusts Instituted in Relation to Agriculture (“FIRA”). These criteria cover the evaluation from a loan origination and servicing perspective of the Participants, coupled with the credit risk criteria of the underlying loans and other credit quality items of the securitized loans.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

EMAIL: requestinformation@idbinvest.org

PHONE: +1(202)-566-4566

ADDRESS: 1350 New York Ave NW, Washington, DC 20005

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://www.iadb.org/en/access-information/information-request

ACCOUNTABILITY MECHANISM OF IDB / IDB INVEST

The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IDB Invest)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IDB Invest is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).

How it works

How it works