Mexico City, December 2, 2002—
The International Finance Corporation (IFC), the private sector development arm of the World Bank Group, announced today an agreement to provide a credit line of US$100 million to Mexico’s Banco Mercantil del Norte S.A. (Banorte), for on-lending to export-oriented companies in the country.
By providing long-term funds for this purpose, IFC will support Mexico’s export sector, which has been the main engine of economic growth in the country in recent years. The IFC credit line is also a recognition of Banorte’s strategic presence and experience in the export sector. IFC and Banorte signed an initial agreement for the first $50 million tranche in November 2002.
Bernard Pasquier, IFC’s Director of the Latin America and the Caribbean Department, said: “Stimulating financial intermediation is strategic for IFC, especially to finance the export sector, which is expected to drive Mexico’s future economic growth and generate employment.”
Karl Voltaire, IFC’s Director of the Global Financial Markets Department, added: “The investment is a signal of IFC’s continued commitment to develop a vibrant private sector in Mexico and to support locally-owned financial institutions.”
Othon Ruiz Montemayor, General Director of Banorte Financial Group, also noted: “The instrumentation of this credit line in dollars will allow Banorte to finance investment projects at attractive tenors and costs, thus strengthening its position to compete effectively with the international banks.”
Banorte is a Mexican commercial bank founded in 1899 and headquartered in Monterrey, Mexico. Banorte is principally engaged in commercial and retail banking, and is part of Banorte Financial Group, a Mexican holding company with interests in banking, leasing, brokerage, asset management, insurance, and other financial services. As of September 30, 2002 Banorte Financial Group had total assets of approximately $18 billion equivalent and shareholders' equity of approximately $1 billion equivalent.
IFC’s mission is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses. Since its founding in 1956, IFC has committed more than $34 billion of its own funds and arranged $21 billion in syndications for 2,825 companies in 140 developing countries. IFC’s committed portfolio at the end of FY02 was $15.1 billion, with an additional $6.5 billion held for participants in loan syndications.
