Banco Bilbao Vizcaya-Mexico, S.A.

completed

Summary Of Project Information (SPI)Project NameMexico-Banco Bilbao Vizcaya-Mexico RegionLatin America and the CaribbeanSectorFinancial ServicesProject No07427Projected Board DateNovember 15, 1996Company NameBanco Bilbao Vizcaya-Mexico (BBV-Mexico)Technical Partner and/or Major Shareholders BBV-Mexico is a wholly-owned subsidiary of Grupo Financiero BBV*Probursa (BBV*Probursa), which is 63% controlled by Banco Bilbao Vizcaya (BBV) of Spain. IFC has a 0.53% interest in BBV-Mexico.Project Cost Including proposed IFC investment Up to US$110 million including (a) an up to US$80 million Restructuring Credit Line (RCL) to BBV-Mexico, and (b) an up to US$30 million Subordinated Convertible Loan (SCL) to BBV-Mexico. The RCL would have a tenor of up to ten years including a two year grace period. US$10 million of the RCL will be dedicated to the States of Chiapas and Oaxaca. The SCL would have a tenor of up to seven years with a bullet repayment, and would be convertible into common shares of BBV*Probursa.Location of project and Description of site MexicoDescription of Company and Purpose of Project BBV-Mexico is Mexico’s ninth largest commercial bank offering a full range of banking and financial services to both corporate and retail clients. The Bank came under the control of BBV in 1995 following a large capital restructuring program designed in large part to re-capitalize BBV-Mexico following the rapid deterioration of its loan portfolio in the wake of the peso devaluation. Many of BBV-Mexico’s viable medium-scale corporate clients continue to suffer from the effects of the adverse economic environment prevailing since the devaluation. The RCL aims to assist BBV-Mexico in the financial restructuring of these enterprises by providing long-term funds not otherwise available to BBV-Mexico. In so doing, the RCL will assist these enterprises in restoring their operations to normal. IFC will play a role in the implentation of the RCL including project selection, appraisal and structuring. The SCL aims to improve the capitalization of BBV-Mexico through the injection of Tier II capital.Environmental Category and Issues This is a Financial Intermediary category project according to IFC’s environmental review procedure. Companies receiving financing under the project through BBV-Mexico will be required to comply with applicable Mexican environmental, health and safety requirements, and World Bank environmental policies and guidelines.Date SPI sent to PIC October 15, 1996     For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 676-0365