Products & Services

PRODUCTS & SERVICES Financial Products and Business Model Services aimed at fostering International Trade

The National Bank of Foreign Trade (Bancomext) seeks to Finance through Markets Financial Direct Finance Fiduciary contribute to the development of Mexico and the crea- and Treasury Intermediaries tion of new jobs through foreign trade finance. Business and Public and Institutional Segment SMEs Corporate Private Investments Bancomext was founded in 1937 and operates by SMEs Enterprises granting loans and guarantees, directly or through Credit commercial banks and non-bank financial interme- Guarantees Fiduciary Working capital Money Desk Letters of Credit Services diaries, to Mexican firms in order to increase their Products Treasury Coverage Mandate Derivatives productivity and competitiveness. International Administration Factoring

Banks Direct 3 Bancomext’s main functions include: Chanel Non-Bank Direct Financial Direct Financial Intermediaries Intermediaries • Financing Mexican exports.

• Financing imports. Direct Financing

• Fostering the internationalization of Mexican companies. • Direct credit for financial needs higher than 3 million dollars. • International export and import factoring. • Supporting foreign investment. • Letters of credit. • Export credit insurance through CESCEMEX, a company in • Integrating Mexican companies to global value chains. which Bancomext is a shareholder.

• Increasing local content in Mexican exports. Financing through Financial Intermediaries

• Funding foreign exchange generating sectors such as tourism • Financing SMEs through financial intermediaries with loans and energy. no higher than 3 million dollars. • Buyer guarantee. 5

Credit Services for SMEs Letters of Credit Guarantees Factoring Financial markets Fiduciary Services Online Banking Others Products & services Credit

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• Working Capital. Credits intended to support the fi- • Corporate Credit. Credits aimed at supporting the financial nancial needs of companies which carry out productive needs of companies in order to carry out their operations. activities related to foreign trade and foreign currency. • Structured Credit. Financial engineering schemes for specific • Equipment. Bancomext supports the purchase of machi- projects in which Mexican companies participate. These schemes nery and equipment, new or used, either manufactured in consider credit risks with an asset or a set of assets, allowing Mexi- the country or imported, in order to grow and modernize can firms to compete in public biddings in Mexico and abroad. Mexico´s productive plant. • Syndicated Loan. Financial instrument designed for the distribu- • Development of Industrial Infrastructure. Financing tion of risks in financing operations in which there are common for the development of industrial infrastructure, the buil- interests among different entities, who trust the management of ding or purchase of industrial units and the payment of a joint credit to an agent bank. liabilities.

• Investment Projects. Credits amounting more than 3 million dollars which support investment projects for the implementation, modification, expansion or modernization of productive facilities and warehou- ses, including the purchase of machinery, equipment and tourism. Services for SMEs Letters of Credit

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• Financing for Exporting and Importing SMEs. Funding • Letters of Credit. The most reliable way of payment in through financial intermediaries for SMEs or individuals with foreign trade, in the forms of Exports, Domestic, Im- direct or indirect exporting entrepreneurial activities. ports, Stand by and Contractual Guarantees. Guarantees

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• Stock Market Guarantee. Partial guarantees or en- • Automatic Guarantee. Guarantees the funds provided by dorsement of payments for capital and interests derived financial intermediaries given to companies which participate from the issuance of commercial paper, stock market certi- in foreign trade or foreign exchange activities. This service is ficates or any other instrument used in the stock market to provided in order to increase the participation of intermedia- improve the ratings assigned by rating agencies. This pro- ries in viable and profitable operations. duct seeks to finance equipment, technology development projects and infrastructure. • Selective Agile Guarantee. Insures loans for working capital, equipment, investment projects and other long- • Buyer’s Guarantee. Bancomext grants its guarantee term loans given by banking financial intermediaries to fi- in order to ensure that financial intermediaries abroad nance trade-related foreign exchange activities. finance, within their countries, buyers of Mexican products and services. Factoring Financial markets

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• Export Factoring. Program which helps Mexican com- • Foreign Exchange. Mexican peso-US dollar transactions are panies meet their liquidity needs through their accounts quoted on the same day, 24 and 48 hours; other currency receivable with an international coverage. transactions are quoted every 48 hours.

• Financing for up to 90% of the invoice value. • Money desk. Bancomext provides direct exchange or repur- • Coverage against buyer’s default risk. chase of negotiated bonds in the market of debt securities, • Management of accounts receivable. in Mexican pesos, with different terms and instruments (govern- • International collection management by financial counterparts mental and banking). This service has the guarantee of the Federal in the buyer’s country. Government.

• Import Factoring. Protection of purchases made abroad • Foreign Currency Banking Deposits. Bancomext offers with the largest international coverage, which facilitates the banking deposits in order to extend and diversify the investment import of products and services in order to strengthen the options through banking deposits in foreign currency. This pro- productive capacity of Mexican companies and enhance duct has the guarantee of the Federal Government. their participation in foreign trade. • Derivatives. Financial instruments tailored to the needs of customers, which help mitigate market risk, due to fluctua- tions in exchange rates and interest rates. Fiduciary Services

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Bancomext’s fiduciary services are provided within the • Deposit. An agreement upon which Bancomext is obliged to applicable legal framework and through healthy banking execute legal acts for and on behalf of an individual. Through a practices, in order to guarantee to our customers a re- deposit, Bancomext ensures that the parties will fulfill a mutual liable management of their investments and wealth. A agreement between them, obtaining in exchange attractive transparent management ensures that the contents of highly-liquid returns. each contract will be enforced according to its specific terms and conditions. • Commission. An agreement through which a person or entity grants Bancomext legal faculties in order to engage in • Trust. An agreement by which a person or entity trans- certain acts of trade. mits the ownership of certain assets and rights to an entity authorized to act accordingly. Those assets and rights are managed by the trust in order to exclusively perform the outlined purpose.

• Mandate. An agreement in which Bancomext is obliged to execute legal acts for and on behalf of a third party. Mandates can be made for all lawful acts for which the law does not require the personal intervention of the parties involved. Online Banking Others

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• Credit. Service available for Bancomext’s clients with a current • Finance of Foreign Trade Inventories. Repurchasing credit line, which allows them to: operation through which Bancomext offers the Mexi- can foreign trade community an alternative to finance • Process online applications. its short-term needs by means of its inventories. • Process online application inquiries. • Credit Insurance. Bancomext offers credit insurance • Bancomext Tr@de for exporting activities through CESCEMEX, a company in which it is a shareholder. • Online services for letters of credit. • International export factoring. • Digital account statement. • Credit operations. • Money desk operations. • Bank deposits in foreign currency. StrategicProgramas de financiamiento a los Sectors Telecommunications Aerospace Mining- Metallurgical New Sectors Transportation andLogistics Electric /Electronic Energy Automotive andAutoparts Tourism Maquiladoras /IndustrialParks Traditional Sectors 19 20 21

Maquiladoras / Industrial Parks Automotive and Auto parts Bancomext provides competitive financing schemes accor- Bancomext provides financial support for companies in ding to the needs of maquiladoras, sector suppliers and the automotive industry, which includes credits and gua- industrial infrastructure developers in leasing and construc- rantees for production, stocks, commercialization and tion, which facilitates the development of value added job middle and long-term investment, through direct finan- creation and the generation of foreign currency efficiently cing or commercial banking. and competitively in the manufacturing sector. Energy Tourism Bancomext aims at promoting financing for renewa- Bancomext supports developers in the building of ho- ble energy projects, providing long-term resources, tels, marinas, golf courses and timeshares, as well as in Mexican pesos or in US dollars, in order to support companies providing tourism services in areas such as developers during the building, operation and mainte- construction, equipment, renovations, working capital nance of energy projects. and sales of tourism projects in Mexico. 22 23

Electric-Electronic Aerospace Financial program created to support the growth and Financial support which promotes growth in the Mexican competitiveness of exporting companies in the electric/ aerospace industry, from service suppliers to original equip- electronic sectors, including manufacturing processes, ment manufacturers (OEMs) of parts and components. maquila and services. Telecommunications Transportation and Logistics Program which aims to support the growth and competiti- The transportation and logistics industries are supported veness of the companies in the telecommunications sector. by financial mechanisms which target the development of infrastructure as well as transportation and logistics services, with the aim of strengthening Mexico’s competitiveness in world trade. Mining- Metallurgical

Financial scheme aimed at supporting sustainable long-term development of the export chain in the mining sector by len- ding in the short, medium and long term, as well as by providing guarantees to meet the needs of the industry. Export Credit Agency (ECA) Contact Information

Enrique de la Madrid Cordero Director-General +52 (55) 5449 9100 [email protected]

www.bancomext.gob.mx

We are available to any interested party through our com- munication channels, where we will gladly attend requests regarding our products and services, as well as any comments or suggestions.

Address: 24 Periférico Sur 4333, Colonia Jardines en la Montaña, Delegación Tlalpan, Código Postal 14210, México, D.F.

Bancomext also acts as the Export Credit Agency (ECA) of the Phone numbers: Mexican Government, as it receives the guarantees or credit +52 (55) 5449 9000 insurances of long-term exports from ECAs abroad, in order 01 800 Exporta (397-6782) to finance Mexican buyers who import capital goods, spare parts and services. Bancomext also provides buyer’s guarantees. With these shared-risk schemes, Bancomext keeps a E-mail: healthy credit portfolio and mitigates its risk, which translates [email protected] into a benefit in the final cost for the client. Internet