Vector Mezzanine Mexico Uno (IFC-38101)

Regions
  • Latin America and Caribbean
Where the impacts of the investment may be experienced.
Countries
  • Mexico
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
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jul 7, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
VECTOR PARTNERS SC
The holder of the loan, grant, or other investment.
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, etc.
Investment Amount (USD)
$ 22.65 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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

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
  • International Finance Corporation (IFC)

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.

Private Actors

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

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


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