The International Finance Corporation (IFC) and BBVA Mexico have completed a new $103.5 million credit guarantee transaction designed to expand financing for small and medium-sized enterprises (SMEs) across Mexico.
The transaction marks the first Significant Risk Transfer (SRT) partnership between IFC and BBVA Mexico and the first transaction of this type between IFC and the wider BBVA Group.
Under the agreement, IFC will provide a guarantee of up to MXN 1.795 billion covering the mezzanine tranche of an existing loan portfolio. The arrangement allows BBVA Mexico to reduce its regulatory capital requirements and release additional resources for lending without raising new equity or selling assets.
SMEs play a major role in Mexico’s economy, supporting employment, investment and local supply chains, but many businesses continue to face difficulties accessing affordable financing. By freeing up bank capital, the transaction is expected to increase credit availability for companies seeking to expand, invest and create jobs.
The initiative also includes a strong focus on women-owned businesses, with approximately 25% of the loan proceeds expected to support women-owned SMEs. This is intended to help address existing gaps in access to finance and strengthen financial inclusion.
IFC said the transaction demonstrates how innovative risk-sharing mechanisms can mobilize private capital and expand lending to businesses that contribute to productivity and economic growth.
The partnership between IFC and BBVA Mexico represents a broader effort to develop innovative financing solutions that strengthen the capacity of financial institutions while improving access to capital for SMEs across emerging markets.
