GTSF-Comerci

completed

This project is proposed under the Global Trade Supplier Finance program (“GTSF” or the “Program”) approved by the IFC Board in September 2010. (Original Project Link #28723).Controladora Comercial Mexicana (“CCM” or “Comerci” or the “Company”) is the fourth largest retailer in Mexico with 227 retail stores, 74 restaurants and 5 distribution centers under operation as of December 31 2011. It is listed on the Mexican Stock Exchange (BMV) and, as of January 20 2012, had a market capitalization of approx. US$2.1 billion. It has 4 business lines (retail, restaurants, real estate management, and a 50-50 JV with Costco) with retail being the largest one as it represents 75% of its revenues (mainly food). Comerci has supplier finance (SF) program in place with NAFIN providing SF to 700 of its suppliers, the large majority of which are small of medium enterprises (SMEs).The Project will establish a Supplier Finance (“SF”) program and make financing available to the suppliers of Commercial Controladora Mexicana (“Comerci” or “CCM” or the “Company”), through the discounting of receivables of the suppliers payable by Comerci. The SF program will have an IFC-funded, uncommitted credit line of US$100mn to be split in: i) US$85 million equivalent denominated in Mexican Pesos (“MXN”) and targeted to CCM’s Mexican SME suppliers and ii) US$15 million denominated in USD and targeted to CCM’s foreign suppliers based in emerging markets. The program will be implemented through PrimeRevenue, a Supply Chain Finance platform, and its local re-seller, E-Factor Network (“EFN”), and it is expected to reach 700 Suppliers the large majority of which will be SMEs.