2019 Anual Report
Treasury and Markets
The needs of financial resources for busines and operation were promptly given; transfer process was set for financial products in competitive levels. The captured balance in national currency was 129,850 million pesos and in foreign currency equivalent to 105,840 million pesos, resulting in a total of 235,690 million pesos. The number of correspondent banks assigned to no-compromised credit line to Bancomext was 28.
The resources from the Institution and third parties are managed by Pension Funds, Special Funds, Retirement Loans, Pension Fonds Defined Contribution, and were invested in market conditions, on the basis of risk limits and applicable operations, giving service to the established investment policies in the respective Committee.
It gave its clients the investment service with profit in the market currency and gave service to the needs of financial resources of the Bancomext Treasury, according to the following:
Within the functions as Exportation Credit Agency (ECA) of the Mexican government, Bancomext negotiated and renewed credit lines and promoted the use of these resources in the foreign long-term bank of development, bilateral and multilateral to fund credit programs.
The money marker desk oversaw the institutional strategy of purchase, sale and repurchase of debt intrument in local currency (MXN), meeting the needs of treasury and promotion markets, closing the deals through brokers, brokerage firms and banks , taking part in primary auctions for goverment securities .
FX trading desk covered the currency risks of Bancomext. Closing deals of foreing currencies purchase and sales, and also cross currency swaps.
The derivate-desk gave service to the needs of the Treasury, managing the fluency and risk of balance, trough the coverage operation trough Swap Interest Rates and Currency. Additionally, helped with the Promoting of Derivates area granting prices and contributions to clients with Rate, Currency and Swaps options, making the coverture of the accredited operations of Bancomext.
Emissions and International Relations
Bancomext undertook the negotiation and hiring of the long-term credit lines, bilateral and multilateral, according to the strategy in the established funding in contrast with the relation with the Exportation Credit Agencies (ECA) and other International Financial Bodies (OFI’s), as well as the Debt Emissions in the National and International Markets.
It also negotiates Cooperation Agreements and other similar tools with international financial institutions, that represent some added value to the institution.
With hired lines with OFI’s, investment projects have been supported, the renewable energies, sustainability and environmental. The Bancomext premise has been to give to the business sector convenient financial conditions so they can place themselves in the international market. The balance in the closing of 2019 were: Multilateral bodies USD329.5 million and bilateral USD 852.6 million.
To that effect, during 2019, Bancomext subscribed two new credit lines:
| Institution | Country | Characteristics | |
|---|---|---|---|
|
Inter-American Development Bank |
|
Multinational |
Finance Telecommunication projects. |
|
Nordic Investment Bank |
|
Multinational (Nordic and Baltic countries) |
Finance projects in the energy sector with Nordic participation |
Regarding the local debt emissions of the certifies stocks, in the closing of 2019, Bancomext has a current number of MXN 25,000 million through 9 emissions.
Bacomext has current bonds emitted in the international markets for a sum of USD 1,700 million:
- An emission of Senior Debt for USD 1,000 million, which meant the return of the international markets of Bancomext, after more than 10 years.
- A subordinated Tier 2 bond for USD 700 million with an expiration date in August 2026, with an anticipated payment option (“Call”) to be used in August 2021.
The emission of this bond increased el capital index of Bancomext, allowing a natural coverture index of capitalization against the volatility and the currency change, given that the capital of the bank is in pesos and the credit portfolio is mostly in American dollars.
On the other hand, agreements were made through “Collaboration Agreements” with banking institutions, as well as foreign public bodies, with the purpose of repositioning Bancomext in the international markets, with the premise to foster foreign investment flow in Mexico, finance and/or guarantee interest projects between parties, as well as incrementing the international markets for Mexican exportation products.
On the other hand, In 2019, Bancomext and the Ministry of Foreign Affairs (SRE) signed a Collaboration Agreement, derived from which:
. The Interinstitutional Planning and Monitoring Committee was formed, with the participation of SRE, the Office of the President, the Ministry of the Economy and Bancomext.
. Participation in the Meeting of Ambassadors and Consuls with the presentation on the main supports that Bancomext and Nafin, in their role as development banks, offer in support of the new strategy of the SRE, as the entity in charge of promoting exports of Mexican products and services, as well as the attraction of Foreign Direct Investment to Mexico.
. Support to SRE in promoting trade and attracting investment, through the appointment of Bancomext officials at Mexican Embassies and Consulates abroad.
