Mexican NBFI Regulatory Enhancement Transition Bond in Mexico

proposed

The transaction consists of a joint securitization through the issuance of Fiduciary Securities Certificates (senior debt) for up to $1,000 million Mexican pesos, within a program of up to $2,000 million Mexican pesos, structured through an issuer trust with Banco Multiva as trustee, and backed by productive credit portfolios originated by Multiple Purpose Financial Companies (“SOFOMs”), AFIX, ATREVUS, COFINE, FTV and Grupo KELQ. The issuance will have a term of up to 6 years, with 18 months of revolving period, subsequent full-turbo amortization. The structure incorporates multi-originator diversification, interest rate hedging and a partial financial guarantee from FIRA and NAFIN for up to 18% each, which allows achieving a AAA local target rating. The resources will be allocated to finance and refinance productive credits to MSMEs, under a social label issuance, with the objective of improving access to long-term funding for SOFOMs in the productive sector, reducing financial costs and strengthening financial inclusion and economic development.