SPI Web Site v1.1
Creating Opportunity Where It's Needed Most
A A A share

IFC Projects Database

IFC Projects Database > Projects > Investment Projects

Summary of Project Information (SPI)

This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.
Project number24577
Project nameBANSEFI AFORE
CountryMexico
SectorDevelopment Finance Company
Department
Company nameBANSEFI AFORE
Environmental categoryC
Date SPI disclosedNovember 29, 2005
Projected board dateJanuary 9, 2006
StatusPending Signing
Previous EventsApproved: January 23, 2006

Description of company and purpose of project
The proposed project is to invest in a start-up pension administration company (AFORE) being set-up by Banco del Ahorro Nacional y Servicios Financieros (BANSEFI), a development finance institution in Mexico and the Mexican Savings and Loan Sector. The AFORE’s initial capitalization is estimated at up to MXN160 million ($15 million equivalent). IFC’s participation is expected to be up to 18% of total equity, or up to $3 million equivalent approximately. Other international and domestic investors have also been invited to participate in the equity.

Project sponsor and major shareholders of project company
The project sponsor is BANSEFI. BANSEFI was set up in 2001 to deepen the Mexican financial system by spreading accessibility of basic financial services through facilitating the offering of products to segments of the population that are typically not served or are underserved by conventional financial intermediaries. BANSEFI operates on the pillar of promoting savings among the poorer segments of the Mexican population, and serves as a supporting bank to savings and loans institutions that serve this sector, by assisting them in a variety of ways, including IT and technical advisory support. It is responsible for coordinating the transformation of Mexico’s savings and credit sector, targeted towards the social segment, into a formalized sector. BANSEFI is currently wholly-owned by the Ministry of Treasury and Finance of Mexico; however, democratization of the institution is envisioned to ultimately disperse the ownership of BANSEFI.

Total project cost and proposed IFC investment
The AFORE’s initial capitalization is estimated at up to MXN160 million ($15 million equivalent). IFC’s participation is expected to be up to 18% of total equity, or up to approximately $3 million equivalent.

Location of project and description of site
BANSEFI is headquartered in Mexico City. It has a network of over 540 branches and serves approximately 3.2 million accounts. More than half its branches are in areas that are minimally served or not served by the formal financial sector.

Project Development Impact and IFC's Role
The development impacts of this project are significant. The project will help:

- Deepen Mexico’s financial sector by making available a retirement savings product to the lower-income population segments;

- Support critical institution-building;
- Channel savings from the target population segment and create a new product, as thus far no AFORE exists that serves this target market;
- Make retirement savings options accessible to the low-income population segments;
- Tap far-reaching sections of the rural poor for whom there is no other way of building up retirement savings;
- Promote savings among the rural poor.

By supporting BANSEFI AFORE, IFC can further its role in providing market access to the under-served population.

Environmental and social issues - Category C
This is a category C project according to IFC's Environmental and Social Review Procedure, as minimal environmental and social impacts are expected in this project. The AFORE will be asked to screen its investments against Mexican environmental and social standards and IFC's exclusion list.

To contact the project company, please write to:
Pedro Guazo, Director of Finance
BANSEFI
Phone: +52 (55) 5481-3357

Stay Connected