Consubanco issues US$129 million in bonds to boost the silver economy in Mexico

With the backing of the International Finance Corporation (IFC), a member of the World Bank Group, as an anchor investor, Consubanco announced the issuance of 2.2 billion pesos (~US$129 million equivalent) in bonds to boost the silver economy in Mexico.

IFC subscribed to 50 percent of the issuance with its own resources and mobilized the other 50 percent from other investors. The issuance was coordinated by i-Structure, a leading firm in financial innovation. The transaction is historic as it represents the first listing without a debt offering in the history of the Mexican stock market. The bonds are fully backed by the credit portfolio of the Mexican Social Security Institute (IMSS) pensioners who are part of Consubanco’s clientele.

Alfredo Flores, CEO of Consubanco, stated: "As a result of this transaction, Consubanco will be able to expand its services to a larger universe of pensioners, retirees, and women, which currently totals more than four million. Always guaranteeing the best conditions and rates, as well as the human values of closeness and dignified treatment of our clients"

Juan Gonzalo Flores, IFC´s Country Manager for Mexico, commented: "As people age, the risk of experiencing financial difficulties and poverty increases due to a combination of insufficient savings, reduced income, and rising expenses. According to the National Institute of Statistics and Geography (INEGI), only 38% of the Mexican population between 60 and 70 years old receives some form of credit, and only 2% receive a personal loan. This joint effort with Consubanco reaffirms our purpose of developing the silver economy in Mexico and the rest of the region"

The silver economy, a subset of the economy related to activities that meet the needs of older people, has gained importance in recent years. The elderly population is growing worldwide in both absolute and relative terms. In Latin America and the Caribbean, it is forecasted that at least 200 million people, one in every four, will be over 60 years old by 2050. The financial sector can help address these challenges by offering services tailored to older people, especially women, who are less likely than their male counterparts to have a contributory pension and, on average, enjoy a longer life expectancy than men.

About IFC

IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.