DCM ABL Consuban (IFC-48627)

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
C
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
Mar 15, 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
Consubanco, S.A.
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)
$ 64.50 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.
Project Cost (USD)
$ 129.00 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 Nov 25, 2024

Disclosed by Bank Aug 5, 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.

According to the Bank’s website, the investment supports a MXN2,200 million (~US$129 million equivalent), 5-year tenor, private-listed placement of a social asset-backed securitization issued by a special purpose vehicle (the Issuing Trust) serviced by Consubanco, S.A., Institucion de Banca Multiple (CSB or the Bank). IFC played an anchor investor role through the subscription of MXN1,100 million (~US$64.5 million equivalent) on an own account basis and played a catalytic role to mobilize MXN1,100 million (~US$64.5 million equivalent) from other institutional investors (the Project). The Issuing Trust acquired and will hold the loans originated by CSB, to pensioners and women, and those assets are expected to be the only source of repayment for the bond.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Considering that the use of proceeds will focus on individual’s only, the E&S risks and impacts of the Project are expected to be of low nature. The Project has been categorized as FI-3 in accordance with the IFC’s Sustainability Framework. Consubanco will inform IFC in the case of any change in the nature of its operation that may affect E&S risks of the supported portfolio.

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

The investment supports a MXN2,200 million (~US$129 million equivalent), 5-year tenor, private placement of a social asset-backed securitization issued by the Issuing Trust serviced by CSB. IFC played an anchor investor role through the subscription of MXN1,100 million (~US$64.5 million equivalent) on an own account basis and played a catalytic role to mobilize MXN1,100 million (~US$64.5 million equivalent) from other institutional investors. The Issuing Trust acquired and will hold loans, originated by CSB, to pensioners and women, and those assets are expected to be the only source of repayment for the IFC loan.

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.

The structure: The Issuing Trust acquired and will hold loans, originated by CSB for the Mexican Institute of Social Security (“IMSS”) pensioners, ensuring that a minimum of 35% of these loans are directed towards women. The cash flows will serve as the sole source of repayment of the notes. 

The Bank: CSB is a commercial bank specialized in credits payable through payroll deductions, granted mainly to employees and pensioners of the private and public sectors in Mexico. Grupo Consupago, S.A. de C.V. is the main shareholder of CSB with 99.9% of participation. 49.39% of the shares of Grupo Consupago are owned by Cubo Capital, and 40.61% are owned by various individuals. Cubo Capital is controlled by members of the Chedraui family, a well-known business family in Mexico. As of today, the Bank has 211 branches across the country which attend over 264,500 clients, representing a 2.4% of the market share in terms of client base. The Bank’s largest market sector is pensioners, with a 3.2% and 66.6% in terms of market share and portfolio composition, respectively.


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.

Consubanco S.A Institucion Banca Multiple
Carlos Budar
CFO

cbudar@consubanco.com
Av. Santa Fe No. 94, Torre C. piso 14, Col. Zedec, Santa Fe Álvaro Obregón, C.P. 01210 México D.F.
www.consubanco.com

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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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How it works