IFC grants financing to Arrendamás for $1,000 million pesos to boost SMEs in Mexico
The International Finance Corporation (IFC), a member of the World Bank Group, granted a financing package of $1,000 million pesos (around US$51 million) to Arrendamás with the objective to boost the development of small and medium-sized enterprises (SMEs) in Mexico.
The IFC financing will be aimed at supporting the growth plan of Arrendamás, focusing on increasing both the placement of products, as well as the diversification and quality of its credit portfolio. Arrendamás is a non-bank financial institution (NBFI) based in Guadalajara, Mexico, which has granted more than $7.7 billion pesos in loans and leases to SMEs in more than 15 states of the country.
Arrendamás also has a strong corporate governance supported by institutional investors including Discovery Americas, a leading private equity fund manager that has made several successful investments in high-growth companies in Mexico, as well as Corporativo Beckmann, an industrial group with presence in various industries.
Alberto Martínez Rubio, general director of Arrendamás, commented: “We are proud to have the support of a world-class institution like IFC. The financing that they have granted us will allow us to expand our presence in Mexico, in addition to continuing the promotion of the development and growth of our clients under high standards of social and environmental responsibility”.
Arrendamás manages a balanced portfolio of leases and loans focused on financing the strategic needs of SMEs. Arrendamás financing supports SMEs mainly in the acquisition of equipment, as well as to solve working capital needs.
Juan Gonzalo Flores, IFC Country Manager in Mexico, highlighted: “Increasing access to financing for SMEs is crucial for Mexico to achieve greater economic growth. IFC’s alliance with Arrendamás will not only consolidate competition in the market, but it will increase the resources directed to SMEs and will contribute to the general economic strengthening of the country”.
One of the main reasons for the low survival rate of micro, small and medium-sized enterprises (MSMEs) is the lack of access to external financing, so they must depend on internally generated funds, which are insufficient to finance in correctly its expansion and growth.
