Warehousing Line and Partial Credit Guarantee for EDILAR Securitization

repaid

IDB Invest seeks to support EDILAR, S.A. of C.V. ("EDILAR") with a financing of up to MXN $540 million in two phases (i) a revolving warehousing line of up to MXN $360 million and (ii) one or more partial credit guarantees for an amount of up to MXN $180 million to guarantee the securitization of Edilar portfolio in the local capital markets. The use of proceeds of the securitization will be used to repay the warehousing line. It is expected that there will be two revolving cycles: after the first cycle, once principal is repaid, the line will be made available again for disbursement.EDILAR's clients are teachers of public education (they are part of the National System of Public Education SNE. EDILAR's main activity is the sale of educational materials, educational technologies, and continuing education services through term financing, generating accounts receivable that EDILAR charges through payroll deduction that teachers have with the government entities in which they work. EDILAR also gives loans to finance teachers' educational purposes, which is also repaid with a payroll discount.