CAF Strengthens Mexico Presence with New Agreement with BBVA Mexico for Production
The line of credit for the Mexican peso equivalent of USD 50 million is part of the portfolio of financial instruments offered by CAF to its member countries to reduce their exchange rate risk exposure.
CAF—development bank of Latin America—and BBVA Mexico signed a line of credit agreement in Mexico City today for the equivalent in Mexican pesos of USD 50 million. The funds from this line are a source of local currency financing that allows CAF to advance initiatives aimed at boosting productivity of small and medium-sized enterprises, as well as supporting the microfinance sector.
This agreement follows CAF’s strategy of diversifying its funding sources and providing countries with a portfolio of tools to reduce their exchange rate risk exposure and expand their service offering to a segment of companies that require differentiated instruments with high development impact. CAF has been encouraging the use of this type of instruments since 2007, when the first agreement with BBVA Mexico was signed. This is the third agreement of its kind that CAF enters into with this institution, for a total of USD 70 million for local currency financing.
With this line of credit, CAF strengthens its catalytic role as a development agent by mobilizing private banking funds to finance initiatives that create economic, social and environmental value, and to improve well-being of the population and boost productivity in Mexico. The signatories in the ceremony included: Emilio Uquillas, CAF representative in Mexico, and Juan Carlos de la Rosa Hernández and Gerardo Javier Ricaño Orozco, representing BBVA Mexico.
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