Vector Mezzanine Mexico Uno (IFC-38101)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Countries
  • Mexico
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
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
Jul 7, 2016
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
VECTOR PARTNERS SC
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)
$ 22.65 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.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 27, 2018

Disclosed by Bank Apr 27, 2016

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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.

According to IFC website, the project would involve supporting Vector Partners S.C. in raising and structuring a Mezzanine Debt Facility in the form of a co-lending agreement among Mexican and international institutional investors to provide long term financing to Mexican mid-size companies. By supporting middle market companies, the project aims to strengthen job security, increase productivity and strengthen local economic development.

As part of IFC’s Capital Market Development Strategy, the project has the potential to enhance the development of the local debt capital market in Mexico by channeling capital flows from local and international institutional investors into a credit asset class, such as mezzanine debt, for the benefit of mid-size companies. The facility will provide long term mezzanine financing to mid-size Mexican companies. The project is expected to increase the access to long term finance to mid-size companies while developing a new investable asset class in the local capital market.

The Environmental and Social risks are related to the potential impacts of the Facility’s portfolio, which due to the size and likely sectors of investment are considered to be of moderate E&S risks. As such the project was categorized as FI-2 according to IFC’s Sustainability Framework. The applicable environmental and social requirements include the IFC's Exclusion List, the national E&S laws and regulations and the IFC's Performance Standards.

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

The proposed project consists of an IFC investment of up to US$24 million, managed by Vector Partners, that will provide long term financing to Mexican mid-size companies. Vector Partners is not targeting any specific sector and will likely invest in manufacturing, services, healthcare and telecommunications among other sectors.

Vector Partner S.C. is owned 99.998% by Agrotecnología Geotel, S.A. de C.V., a Mexican company owned 99.998% by Plenus, S.A. de C.V.. Plenus, S.A. de C.V. is owned 99.998% by Consuelo Lourdes Garza Laguera Rangel. It is expected that, as part of the Vector Grupo Empresarial restructuring, the ownership structure of Vector Partners S.C. will change to belong 99.998% to Vector Grupo Empresarial who will consolidate all Vector’s companies (Vector Casa de Bolsa S.A. de C.V., Vector Partners S.C. and others) under the same controlling company, under Plenus Group.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Vector Partners S.C. is owned 99.998% by Agrotecnología Geotel, S.A. de C.V., a Mexican company owned 99.998% by Plenus, S.A. de C.V.. Plenus, S.A. de C.V. is owned 99.998% by Consuelo Lourdes Garza Laguera Rangel. It is expected that, as part of the Vector Grupo Empresarial restructuring, the ownership structure of Vector Partners S.C. will change to belong 99.998% to Vector Grupo Empresarial who will consolidate all Vector’s companies (Vector Casa de Bolsa S.A. de C.V., Vector Partners S.C. and others) under the same controlling company, under Plenus Group.

Vector Partners S.C, through its affiliate company, Vector Casa de Bolsa, S.A. de C.V. (“VCB”) has national presence with 24 offices in the 22 most important cities in Mexico. VCB is currently the biggest independent brokerage house in Mexico, with over MXN96bn ($5.48 bn) of assets under management for more than 37,500 clients.


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.

Project Contact: Pablo Taberna Albea
Office Address: Mezzanine Facility Director, Vector Partners, S.C
Ave. Roble #565 ote. Col. Valle del Campestre, Garza García, N.L.
Telephone No.: +52 (81) 8318 3670
Email Address:ptaberna@vector.com.mx


ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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