UniCCo: Pioneer Sustainable Issuance in Mexico

proposed

The proposed transaction consists of IDB Invest’s participation as an anchor investor in a thematic securitization of up to MXN$1 billion issued by a trust established in Mexico. The issuance is structured as a securities certificate, backed by a loan portfolio originated by the Unión de Crédito para la Contaduría Pública (Public Accounting Credit Union)S.A. de C.V. (“UniCCo” or the “Program Participant”) with IDB Invest subscribing to up to MXN$600 million, while the remaining MXN$400 million is anticipated to be acquired by other institutional investors. The funds raised will be allocated to augment the financing offered by UniCCo in the form of subloans directed towards its social portfolio (Small and Medium-Sized Enterprises or “SMEs”), green portfolio, and social portfolio with a gender perspective.Additionally, through technical advisory services, IDB Invest will help UniCCo establish the foundations, key products, and requisite actions to position it, in the near future, as a preeminent institution in the sustainable financing sector, focusing primarily on women-led SMEs and green credit.The issuance to be signed by IDB Invest will have the following characteristics: (i) it will consist of senior bonds denominated in Mexican Pesos (“MXN$”); (ii) it will have a term of up to five years, including a revolving period of up to two years; (iii) it will be thematic and labeled as a sustainable bond; and (iv) it will be aligned with the International Capital Market Association (“ICMA”). The funds derived from the issuance will enable UniCCo to originate new green loans and loans to SMEs in Mexico, particularly those led by women.