Washington, D.C., July 5, 2005—The International
Finance Corporation, the private sector arm of the World Bank Group, will
provide up to $50 million in long-term financing to Grupo Financiero Banorte,
one of Mexico’s leading financial groups. IFC’s 12-year loan will
support Banorte’s long-term financing projects to local Mexican companies.
This is IFC’s second financing to Banorte.
“IFC is a long-standing partner, and we are pleased to be able to work
with Banorte again to help it further increase its private sector lending
activities,” said Jyrki Koskelo, IFC’s Director for Global Financial
Grupo Financiero Banorte is Mexico’s fourth-largest financial group in
terms of assets; among the country’s five largest banks, it is the only
one locally owned. It provides retail and commercial banking services as
well as insurance, pension fund management, annuities, brokerage, leasing,
factoring, and auxiliary services.
Luis Pena, CEO of Grupo Financiero Banorte, said, “We value the relationship
with IFC and the chance to work together to support the development of
our clients. This transaction further deepens our existing cooperation
and sets the stage for new opportunities ahead.”
Atul Mehta, IFC’s Director for Latin America and the Caribbean, noted
that, “This investment reflects IFC's objective of improving the availability
of long-term finance for mid-sized Mexican companies through local financial
IFC’s priorities in Mexico also include further deepening of the financial
sector through specialized products and markets, such as structured financing
and housing finance, and promoting investments in areas newly opened for
private sector participation, such as infrastructure.
Mexico achievement of full investment grade in 2002 has facilitated the
country’s access to capital, especially as regional markets have recovered
from mid-2003 onward. This has allowed IFC to take a sophisticated approach
to the country’s development, targeting the sectors where investments
can have the biggest economic and social impact.
In the most recent fiscal year (which ended in June 2004), Mexico was the
country receiving the largest amount of IFC financing in dollar value.
IFC invested a total of $707 million, including $259 million in syndications,
in sectors ranging from infrastructure to manufacturing and the financial
sector. IFC’s total portfolio in Mexico was $833 million as of March
The mission of IFC (www.ifc.org)
is to promote sustainable private sector investment in transition economies,
helping to reduce poverty and improve people's lives. IFC finances private
sector investments in the emerging markets, mobilizes capital in the international
financial markets, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.
From its founding in 1956 through FY04, IFC has committed more than $44
billion of its own funds and arranged $23 billion in syndications for 3,143
companies in 140 developing countries. IFC’s worldwide committed portfolio
as of FY04 was $17.9 billion for its own account and $5.5 billion held
for participants in loan syndications.