Banco del Bajio

completed

The proposed project consists of an equity investment and a standby line of credit to Banco del Bajio, S.A. (Bajio or the Bank), with the objective of supporting the expansion and consolidation of the Bank’s operations in Mexico.Banco del Bajio is a regional bank with significant presence in the northern, western and central regions of Mexico. The Bank is one of the most dynamic niche financial institutions and the 8th largest bank in Mexico in terms of assets; it focuses on three principal business lines: SMEs, agribusiness, and commercial banking. In recent years, the bank has diversified into high growth segments like mortgages and consumer loans.Leon-based Bajio is majority owned by Mexican investors with Spanish bank Banco Sabadell holding a 20% stake in the company. Since 1994, when the Bank initiated its operations, the network has grown significantly. As of December 31, 2005 total assets amounted to $3.69 billion, up from $463 million in 1994. Bajio currently employs close to 1,242 people in Mexico, compared with 25 in 1994, and the network is rapidly growing: Bajio ended December 2005 with 88 branches and plans to open more than 20 branches a year over the next decade in central and northwestern Mexico.