Mexico has been a non-regional CABEI member since 1992 with an authorized stake of USD306.25 million in the Bank's share capital and capital contributions of USD76.56 million, ranking as the third largest shareholder within the group of non-regional members with 5.03%.
The contribution that Mexico channels to the Central American region through CABEI is based on various financial cooperation instruments with Banco Nacional de Comercio Exterior S.N.C. (Bancomext) for a total amount of USD520.8 million. The relationship between the Bank and this country was solidified in 2008 with the launching of the Central American Social Housing Development Program. It falls under the framework of the Mesoamerican Integration and Development Project (formerly Plan Puebla Panamá). Since that date, the Mexican government has made resources available to develop a sustainable market for long-term housing finance in the Central American region that addresses the housing deficit and future needs in this area. Throughout the Program's existence, 59 disbursements have been made through 14 intermediary institutions. In total, 192.7% of the initial financing available has been channeled, benefiting a total of 8,032 low- income households, which can now enjoy a more dignified home.
CABEI issues MXN Notes for 2nd Time this Year
The transaction represents a significant achievement for the multilateral.
High volatility tends to limit action in the capital market; However, a good credit story can be sold, even when conditions are not the best. On October 20th CABEI announced the Issuance of MXP 1.325 billion in Fixed Rate Notes.
"We continue harvesting successful transactions in the market" stated Dr. Nick Rischbieth Glöe, CEO of CABEI.
"We have completed more than 20 deals in 8 Latin American currencies, fostering our objective and in consonance with our strategy of funding diversification", he added.
The notes pay a semi-annual coupon of 5% and mature in 2016, thus adding to CABEI's Mexican curve. "Since 2007, CABEI has executed 2 transactions in average every year in Mexico, raising close to MXN 10 billion", commented Jose Felix Magana, Treasurer of Multilateral Lender.
The notes, issued out of CABEI's MTN program, received top rating of "MxAAA" by both Fitch Ratings and Standard & Poor's.