IDB/Ixe Bring Mexico PCG

The IDB is setting up its first capital markets guarantee facility in Mexico to help local corporates access domestic debt markets at better terms. The facility of up to 450m UDIs ($180m) will be set up in partnership with IXE Casa de Bolsa to provide credit enhancements for Mexican businesses, including financial companies and SPVs. The providers are targeting deals in MXP for the equivalent of $20m-$100m in size. The partial credit guarantees, which will be reimbursable in MXP, will help companies with local ratings of at least BBB place debt securities at tenors of more than 3 years. They are also aimed at achieving greater access to local institutional investors, whose portfolios mostly hold government and corporate bonds rated at least AA.