Investors have penalized non-bank financial intermediaries in Mexico, as a result of the defaults reported by companies such as Tangelo (formerly Mexarrend), AlphaCredit, Unifin and Crédito Real, explained executives of Fimubac, a Sofom specialized in granting payroll credit to entities in the government.
“Due to the problems of some non-bank financial intermediaries, it is much more complicated to place an international bond and take on unsecured debt,” said David Moel, Fimubac’s Business Director.
In a conference on the occasion of the issuance of structured debt for 1,580 million pesos at a gross annual interest rate of 13.38%, in the Institutional Stock Exchange (Biva), the manager mentioned that even for them it was difficult to “convince investors premises” to participate in its public offer. “For the non-bank financial institutions sector, it is a difficult time to issue unsecured debt,” he reiterated.
Alberto Alvo, general director of Fimubac, said that although they have tried to differentiate themselves and have asked investors to classify them differently from firms with liquidity problems, this has not happened because in the end they are part of a market .
In this sense, Víctor González, general director of I-Structure, dedicated to structuring securitizations for non-bank financial entities in Mexico, agreed that the market must distinguish the firms in the sector that have defaulted due to having been highly indebted and having issued debt unsecured not backed by assets.
“There have been non-bank financial entities that unfortunately have entered into default situations (…) When you see that a company is suffering in the markets, do not generalize, you have to differentiate, you have to understand that there are companies that over-leverage, that issue unsecured debt that is not backed by assets, but there are also others that only issue debt backed by real assets, with an excellent credit rating”, pointed out Víctor González.
This is the fourth issuance of stock certificates that Fimubac has carried out in the Mexican stock market.
take advantage of gaps
David Moel pointed out that the resources raised will be to take advantage of the market opportunity or the gap left by “several of its competitors”, who are facing financial problems, to grant payroll loans, whose demand is high. They will also seek to provide financing to other non-bank financial institutions.
Fimubac is a Multiple Purpose Financial Company that provides loans, leasing and financial factoring in Mexico. It has a portfolio of more than 4,500 million pesos and more than 600,000 active clients.
