Mexico City, Mexico. June 14th,
2018 - The International Finance Corporation (IFC), a member of the
World Bank Group, has provided a MXN$350 million loan (US$18 million equivalent)
to Altum Capital, a private debt fund that seeks to expand financial inclusion
in Mexico by providing financing to non-banking financial institutions
and directly to small and medium enterprises (SMEs) with the objective
of providing financial tailor made solutions.
In order to reduce the financing gap that afflicts the country, around
60 percent of the loan will be used to support microfinance and small and
medium-sized Mexican companies. The rest will consist of loans for housing
and individuals. The companies financed by Altum Capital currently have
limited access to financing from banks. Thanks to this loan, Altum Capital
has the opportunity to increase coverage of credit and provide a better
service to its clients.
Ary Naïm, Country Manager of IFC said: “By serving the needs of many specialized
financial institution, this initiative with Altum Capital constitutes a
new tool to improve our efforts in financial inclusion. As they grow and
develop, these institutions will have a positive impact on job creation
and income generation across the country.”
According to World Bank Group´s estimates, by expanding the effectiveness
of existing financial inclusion efforts like the one represented by Altum
Capital, Mexico can enable a large sector of the population to have access
to a bank account and other financial services. Founded in 2014, Altum
Capital is managed by Legorreta Gómez y Asociados (LG&A). Backed by
a team of experienced banking and financial professionals, Altum Capital
investment philosophy is to support companies that encourage credit to
markets that are unattended by traditional banks.
Eduardo Legorreta, Director of Altum Capital said: “We want Altum to be
the investment alternative to participate in Mexico’s private debt industry
for our investors, a market with low credit penetration and with a great
opportunity to grow. This loan facility allows Altum to provide more financing
alternatives to SMEs in Mexico and to continue to promote financial inclusion
throughout the country”.
IFC´s strategy to promote financial inclusion in Mexico entails supporting
responsible intermediaries and leveraging them to meet development impact
and financial sustainability goals. In 2017, IFC’s committed long-term
Micro, Small and Medium Enterprises (MSMEs)-focused portfolio was US$12
billion, of which 18 percent was in Latin America and the Caribbean. In
addition, IFC had 215 active MSMEs-related advisory projects valued at
More about IFC:
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In FY17, we delivered a record $19.3
billion in long-term financing for developing countries, leveraging the
power of the private sector to help end poverty and boost shared prosperity.
For more information, visit www.ifc.org.
More about Altum Capital: Altum Capítal is a private debt fund managed
by LG&A which invest in senior secured structured debt to None Bank
Financial Institutions and SMEs in Mexico. LG&A has 4 years of experience
and a team of 18 professionals. Since inception in 2014, Altum has provided
loans for more than MXN$2,600 million in 65 different investments.
During the 4 years of work and in support to the country’s sustainable
growth, Altum can proudly confirm that it has become a promoter of increasing
financial inclusion within Mexico by reaching directly or indirectly with
loans to more than 1.8 million SMEs and individuals. For more information,