Citigroup Inc. (NYSE: C)
September 23, 2009
Citi/Banamex Places Compartamos Long-Term Debt for Largest Microfinance Lender in Latin America
Mexico – Citi/Banamex announced additional financing for long term debt to Compartamos Banco's, "Certificados Bursatiles Bancarios." Citi/Banamex issued the second tranche this year – in the amount of Ps.$1 billion ($75 million), and it was 1.2 times oversubscribed.
Humberto Cabral, Capital Markets Origination, Banamex, stated, "Citi/Banamex has a long and valued relationship with Banco Compartamos. This oversubscribed capital markets issue has broadened the range of investors in Compartamos, Latin America's largest microfinance bank."
The local bonds, with a tenor of three years and priced at 200 bps over the interbank rate, were placed among local institutional and retail investors. The bonds obtained a credit rating from Standards and Poors of "mxAA-" and "AA- (mex)" from Fitch ratings. The financing issued by Citi/ Banamex will be used by Compartamos Banco to diversify its funding sources.
"This transaction for Compartamos is another example of how investing in microfinance is good for business, but also helps to create social wealth in our communities. We are excited to involve a leading global financial institution like Banamex in creating a more inclusive and stronger financial industry," said Fernando Alvarez Toca, Compartamos Banco CFO.
Citi, acknowledged as the leading global bank working with the microfinance sector, believes that the global benefits of a robust microfinance industry are clear, and that it is necessary to help strengthen the industry through dedicated commercial initiatives, such as Citi Microfinance, has proven to be a sustainable and scalable business model.
In 2004, Citi/Banamex announced the first issuance of peso-denominated investment grade bonds to finance microfinance activities in Mexico to Banco Compartamos in the amount of P$ 190 million. This innovative transaction was awarded Structured Deal of the Year by Latin Finance Magazine and Sustainable Deal of the Year by the Financial Times.
Microfinance Institutions (MFIs) provide financial services to millions of people who have been underserved via savings, credit, insurance and remittance products and services.
Citi
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 140 countries. Through Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Additional information may be found at www.citigroup.com or www.citi.com.
Citi Microfinance
Working across Citi's businesses, product groups and geographies, Citi Microfinance serves more than 100 microfinance institutions (MFIs), networks and investors as clients and partners in over 40 countries with products and services spanning the financial spectrum – from financing, access to capital markets, transaction services and hedging foreign exchange risk, to credit, savings, remittances and insurance products - to expand access to financial services for the underserved. www.citi.com/citi/microfinance
Banco Compartamos
Banco Compartamos, a Mexican bank specializing in microfinance, is the largest lender to micro business owners in Latin America. Compartamos provides small loans to low-income Mexican individuals and business owners such as craft manufacturers, food vendors and other small businesses. With nationwide coverage, Compartamos works with local and international lenders to secure financing. Seguros Banamex and Compartamos have partnered together to provide more than 9 million insurance policies to low income families in Mexico