Total Financing

The balance of the total loan portfolio as of December 2021 remained stable, with a slight drop of 3.95% compared to December 2020 (includes indirect or induced credit: granted by financial intermediaries with a guarantee from a promotion entity). The balance of the portfolio to the private sector represents 97% of total portfolio.

Source: Bancomext

Source: Bancomext

Financing First Tier

Achievements and Challenges of the Deputy General Director's Office for Corporate Banking

The measures adopted by the Federal Government and the Financial Sector in light of the health and economic effects caused by the pandemic helped companies tackle temporary liquidity constraints and in terms of curbing deterioration in their financial soundness. Bancomext, as well as Commercial Banking Institutions and Financial Intermediaries, established a support program, in addition to the strategies adopted by the CNBV. These support programs include the restructuring and rescheduling of loans, the granting of grace periods for payments of principal and interest, as well as the granting of working capital support in addition to the rescheduling of debts.

As a result of this effort, throughout 2021 16 rescheduling measures were authorized for more than 1,900 million MXN (rescheduled capital). The total amount of the credit lines associated with said rescheduling reached 10,951 million MXN, as an extension of the work conducted by the Institution in 2020, and 35 lines of complementary working capital were authorized, of which five worth 125 million MXN corresponded to 2021.

In addition, the Deputy General Director's Office for Corporate Banking continued deploying its Business Model, aimed at financing sectors linked to the increase in volume of the country's non-oil-related exports and to the generation of currencies such as tourism, development of industrial infrastructure-industrial facilities, automotive and auto parts, transportation, logistics, aerospace, telecommunications, electrical and electronic, energy, chemical-pharmaceutical and mining and metals, among other sectors of the economy through its Regional Directorates.

As of December 2021, the first-tier portfolio balance for the private sector recorded a total of 197,004 million MXN, 3.9% less than in 2020, which recorded a total of 205,063 million MXN.

Source: Prepared by the authors with data from Bancomext.
Note: Includes financing, factoring, letters of credit, guarantees and indirect or induced credit (private sector).

On the other hand, throughout 2021 first-tier placement or spending of resources reached 122,661 million MXN:

Source: Prepared by the authors with data from Bancomext.
Note: Includes financing, factoring, letters of credit, guarantees and indirect or induced credit (public and private sector).

The income generated as of December 2021 due to financial margin and first-tier commissions, which contribute to the Institution's sustainability, reached 4,672 million MXN:

Source: Prepared by the authors with data from Bancomext.
Note: Includes financing, factoring, letters of credit, guarantees and indirect or induced credit (public and private sector). Does not include return on capital used for 172 million MXN.

The number of companies benefitted, by the end of 2021, was 1,057. Said figure includes 487 companies with direct support and 570 companies supported indirectly. The former reported a 1.7% growth compared to the same period in 2020:

Source: Prepared by the authors with data from Bancomext.
Note: Includes financing, factoring, letters of credit, guarantees and indirect or induced credit (public and private sector).

Portfolio of Prospects (Pipeline)

By the end of December 2021, the portfolio of prospects (Pipeline) reached 88,928 million MXN, of which 40,430 million MXN correspond to 79 applications that are part of the credit process.

Source: Prepared by the authors with data from Bancomext.

Private Sector

Tourism

As part of the strategies to maintain the performing portfolio faced with the economic crisis due to COVID-19, by the end of December 2021, a total of nine performing loans from the tourism portfolio were rescheduled or restructured for 224.8 million MXN.

The credit channeled as first-tier has contributed to strengthening companies in 27 states of the Republic, with a distribution of 51% to the country's south zone, 41% to the Pacific zone and 8% to the center-north zone^[15].

It is worth highlighting that, by the end of December 2021, the construction of 2,730 new hotel rooms has been completed in the states of Baja California, Chihuahua, Nayarit and Quintana Roo, after starting operations in the period mentioned. These rooms will create more than 3,200 new direct jobs.

Some relevant indicators from this portfolio are:

• The portfolio of the Tourism sector is the most important one in the credit portfolio balance, given that it rose to 41,053 million MXN, which represented 20.8% of the total first-tier portfolio for private sector, reporting a 9.1% increase compared to the same period in 2020.
• The number of companies benefitted was 106, which represents 21.8% of all companies benefitted in the Deputy General Director's Office for Corporate Banking.
• The income from financial margin and commissions generated by this sector amounted to 1,036 million MXN, equivalent to 22.2% of total income from Corporate Banking. Meanwhile, the spending of resources rose to 8,266 million MXN, 23.4% higher than the previous period.

Assembly Plants Industry [Maquila] for Exports (Industrial Facilities)

By the end of December 2021, the Corporate Banking area continued to boost financing to further develop industrial infrastructure in the country, specifically. The ratification of the USMCA and the alignment with the presidential order on the strengthening of Mexico's North Zone produced a positive outlook in this sector's future demand, which contributes to the strengthening of the region and increases the country's competitivity, since it attracts foreign investment by promoting the integration to global value chains and stimulating the generation of currencies.

Among the main actions carried out by the end of 2021, the following stand out:

• In CKDs (acronym in Spanish for Certificates of Capital Development: financial vehicles with resources from Mexican afores -Pension funds managersthat improve the pension funds of Mexican workers), 14 projects were financed with an expenditure worth 2,803 million MXN in facilities located in Saltillo, Hermosillo, Coahuila, Aguascalientes, Nuevo Laredo, Mexicali, Ciudad Juarez and Monterrey.
• In the case of Investment and Real Estate Trusts (FIBRAS for the acronym in Spanish), corporate lines of working capital were renewed for eventual liquidity needs and, with long-term lines, six specific projects were financed, with an expenditure worth 851 million MXN in facilities located in Ciudad Juarez, Tijuana and Queretaro.
• Regional Developers through direct credits. A total of 46 industrial facilities were financed, located in 11 different cities.
• Priority projects of the Federal Government, such as the bridge loan to launch infrastructure maintenance and improvement projects in a state-owned company.

Some relevant indicators from this portfolio are:

• In terms of first-tier portfolio balance, it was the third most important portfolio on a sector level, since it contributed with 28,227 million MXN, 14.3% of the portfolio. Moreover, the spending of resources throughout 2021 reached 8,350 million MXN, 19.7% higher than the previous period.
• The portfolio from this sector produced the third highest contribution to the financial margin plus commissions, with a total of 574 million MXN, equivalent to 12.3% of total first-tier income in Corporate Banking.
• This sector's contribution to the number of companies benefitted was 82, a figure that represents 16.8% of the total.

Automotive Industry

The automotive and auto parts sector continued having difficulties to recover throughout 2021, as a consequence of the SARS-CoV-2 (COVID-19) pandemic, given that the sector's supply chain was affected and there was a shortage of semiconductors. Only in 2021, the production of 2.9 million light vehicles was reported, which represented a 2.0% decline in relation to the previous year. On the other hand, in the same year 2.7 million light vehicles were exported, and even though this did not represent a decline in the period, it did not show any significant growth either: merely 0.9%^[16].

For the Corporate Banking area from Bancomext, this sector is highly relevant because of its participation in Mexico's trade balance, the generation of currencies and the opportunities generated based on the creation of value chains in the sector.

Among the main actions carried out in 2021, the following stand out:

• A credit for 410 million MXN was authorized to a First-Tier financing company, located in Hermosillo, Sonora, to address the CX430 and P758 programs from Ford. Because of its high capacity in terms of manufacturing, engineering and design, it requires financing for adjustments in its production lines, acquiring supplies, tools and specific smaller equipment for said programs.
• A credit for a total of 60 million MXN for working capital was authorized to a company with Mexican capital specializing in the production, assembling, distribution and sale of commercial vehicles; this credit will allow it to maintain its growth strategy and presence in Mexico.

Some relevant indicators from this portfolio are:

• The first-tier portfolio balance reached 12,270 million MXN, which represents 6.2% of the total first-tier portfolio balance for the private sector.
• The spending of resources during the period was 15,241 million MXN, which represents 12.4% of the total placement of Corporate Banking.
• The number of companies benefitted was 37 and this generated income from financial margin plus commissions for 212 million MXN, contributing 4.5% to the total amount.

Transport, Logistics and Aerospace Industry

On the other hand:

• A credit line for Working Capital worth 348.6 million MXN was approved, to advance public safety in some states of the Republic; the goal is to develop infrastructure with equipment similar to the C-5 from Hidalgo. Moreover, a factoring line worth 164 million MXN was granted to support domestic contractors from the regions where said projects will be carried out and to contribute to the value chain.
• A credit line of up to 400 million MXN was authorized to partially finance the construction costs for the Breakwater of the Salina Cruz Port in Oaxaca, as part of the Interoceanic Corridor, which is one of the priority projects for the Federal Government.
• A credit line for 123 million MXN was approved and used in whole to support the liquidity of a company specializing in the production of aircraft turbine parts. This credit line will allow to finance in part the investments in its manufacturing plant located in Hermosillo, Sonora.
• In a joint participation between Bancomext and a Financial Intermediary, a credit line worth 118.9 million MXN was granted to purchase machinery to produce turbine parts assigned mainly to the energy and aerospace sectors. It is worth mentioning that, as part of this project, around 70 additional jobs were created in Sonora. This case is linked to the USMCA because it has directly to do with an export company.

Some relevant indicators from this portfolio are:

• The first-tier portfolio balance amounted to 13,069 million MXN, amount which represents 6.6% of the total first-tier portfolio balance for private sector.
• The sector generated the highest contribution to the spending of resources from Corporate Banking, by reaching 36,374 million MXN. This amount represents 29.7% of the total placement of the first-tier portfolio.
• The sector portfolio generated a contribution to the financial margin plus commissions of 405 million MXN. The number of companies benefitted in the period was 35.

Traditional Energy and Renewable Energy

By the end of 2021 the following actions in the Oil and Gas subsector stand out:

• Financing costs and VAT to develop two light-weight offshore platforms in shallow waters of the Gulf of Mexico, supporting:
  • The generation of 1,440 jobs in the area of Campeche, with a total investment of 11,678.9 million MXN.
  • Compliance with the guidelines from the National Hydrocarbon Commission (CNH for its acronym in Spanish) in terms of national content and socio-environmental aspects.
  • 74% of the project's operating profit corresponds to the country without any provision of public resources.
• The Institution supported the construction of an offshore gas compressor to boost the extraction of hydrocarbons in the Ku-Maloob-Zaap PEMEX complex; with 180 wells, it holds around 64% of proven reserves in the Southeast Marine Region. This implies a 40% contribution to the national production of crude oil. The construction will help PEP (Pemex Exploration and Production) increase and optimize hydrocarbon exploitation, supporting compliance with the guidelines from the National Hydrocarbon Commission.
• Resources were allocated to Petróleos Mexicanos for more than 1,763.6 million MXN from the revolving credit line, with the purpose of covering different investment and operation expenses, and of injecting liquidity to the state-owned company for paying and/or refinancing liabilities. This is carried out in line with the Federal Government's strategy of supporting the state-owned oil company.
• The Institution supported a credit line for Working Capital for 164 million MXN, with general corporate purposes, as well as a line for Standby Letters of Credit for 656.2 million MXN, with general corporate purposes and to guarantee obligations for payment, delivery and transportation of natural gas, by means of a syndicated credit
• The Institution supported a revolving credit line for 717.8 million MXN, for a subsidiary company from PEMEX in a syndicated credit with more than 18 national and international banks.

As to the subsector of electricity generation, the Institution has contributed to developing construction projects, to their start of operations and to the sound management of credits, highlighting the following:

• Support to a clean energy project (250 MW Photovoltaic Solar) corresponding to the Third Tender. Said project began with its transactions in April 2021 through the temporary mechanism of the clearing house, which allows the borrower to sell and invoice to the buyers the products contracted and for these to pay for the products to the borrower.
• The Institution supported a Photovoltaic Solar project of 145.5 MW, granted by the CENACE (acronym in Spanish for National Center for Energy Control), which launched its commercial operation on March 9th, 2021. This project stands in line with the Mexican Government's energy policy and allows abiding the environmental commitments made with international bodies in connection with the reduction of emissions and climate change. These commitments recommend the orderly increase of electricity generation through clean and renewable energies.
• In March of 2021, the Institution authorized the restructuring of the financing for the construction and start-up of six photovoltaic facilities of approximately 146.5 MW located in Durango, State of Durango, by means of a syndicated credit.
• The Institution supported a strategic project for the CFE (Federal Electricity Commission), granted by the CENACE, which brings stability to the National Electric System, since the 850 MW Combined Cycle power plant is a technology with no intermittency compared to the renewable energies. It started its commercial operation in early 2021.
• Credit lines were authorized for the issuance of Standby Letters of Credit (CCSB for its acronym in Spanish) by CFE and/or its subsidiaries for the contracts they have signed in their respective operations in the electric sector.
• A line for letters of credit of up to 212 million MXN was granted for the contracts on long-term tenders that CFE and/or subsidiaries have to date, in addition to a line for letters of credit of up to 526 million MXN for contracts passed on. The first Letter of Credit was issued for 57.3 million MXN, corresponding to the line for long-term tenders.
• The Institution supported the management and negotiation of a credit for the reprofiling of liabilities with CFE, by means of a syndicated credit with NAFIN, where Bancomext also serves as Administrative Agent. The total financing amount is up to 3,725 million MXN.

Some relevant indicators from this portfolio are:

• The portfolio balance from this sector amounted to 32,027 million MXN, amount that represented 16.3% of total first-tier portfolio balance for private sector. This makes it the second most important portfolio from Bancomext's sector blocks.
• The portfolio from this sector generated income from financial margin plus commissions of 623 million MXN, which represented 13.3% of total income generated by Corporate Banking.
• As to the spending of resources, this sector reported a total of 27,949 million MXN, with a 22.8% contribution. Throughout the 2021 period, the number of companies benefitted in this sector reached 61.

Telecommunications

The telecommunications industry also suffered the consequences of the SARS-CoV-2 (COVID-19) pandemic in 2020, given that the sector as a whole experienced a fall, despite the increase in the demand for digital services and for connectivity, which allowed the population to continue performing its work, educational and entertainment activities.

Even though this sector remained active throughout 2021, it did not experience a significant growth in the period, which is why Bancomext continued reinforcing the measures to support the companies that provide information technology, communication (including broadband), telecommunications and broadcasting services. These supports seek benefits for the entire population, in accordance with the "Internet para todos- [Internet for all] project from the Federal Government's 2018-2024 National Development Plan.

What stands out in the period evaluated is the support provided to telecommunications services operators for infrastructure development in the states of Sonora, Leon, Tabasco, Chiapas, Oaxaca and Quintana Roo. For the coming months, the Institution estimates a spending of resources close to 200 million MXN.

Electrical-Electronic

By the end of 2021, the electrical and electronic sector kept growing steadily, despite the shortage of semiconductors used to manufacture different electronic devices. The growth is due to the acceleration in the digital era requirements, caused by social distancing and the implementation of new work and education models.

Bancomext continued supporting the growth and competitivity of companies participating in the electrical and electronic sectors with manufacturing processes, maquila (assembly plants) or services that are part of the export chain.

The portfolio from this sector reported a first-tier portfolio balance for private sector of 4,652 million MXN, a spending of resources worth 1,736 million MXN, five companies benefitted and income from financial margin plus commissions of 110 million MXN.

Chemical-Pharmaceutical Sector

The chemical-pharmaceutical sector has gained relevance and competitivity globally; this is due to the demand for medical drugs to tackle the health crisis caused by SARS-CoV-2 (COVID-19). Bancomext, interested in offering a comprehensive support proposal in terms of financing, favored an outreach between the Institution and the companies affiliated to the National Chemical Industry Association (ANIQ for its acronym in Spanish), as well as with the companies integrated in the supply chain, with the purpose of triggering the activation of the competitivity of these companies for the benefit of the country's economy.

The portfolio from this sector reported a first-tier portfolio balance for private sector, by the end of December 2021, worth 7,226 million MXN, and throughout the evaluated period resources were spent, totaling 1,846 million MXN, with 11 companies benefitted and income from financial margin plus commissions reaching 132 million MXN.

Other Sectors

Portfolio balance of 47,816 million MXN, amount that represented 24.3% of total first-tier portfolio balance for private sector:

Source: Prepared by the authors with data from Bancomext.

The placement of financial resources reached 21,331 million MXN, with a 17.4% contribution to the total amount of first-tier placement.

Source: Prepared by the authors with data from Bancomext.

The contribution to income from financial margin plus commissions was 1,225 million MXN, which represented 26.2% of the total amount of first-tier generated income.

Source: Prepared by the authors with data from Bancomext.

The number of companies benefitted belonging to other industry sectors was 135, representing 27.7% of total first-tier directly benefitted companies.

Main achievements in Regional Directorates

Northeast Regional Directorate

• A simple credit for 1,025 million MXN was granted to a Mexican industrial group that encompasses three business units: Cables and Wires, Transformers and Infrastructure and Foods. The credit financed the company's needs in terms of working capital and/or that of its subsidiaries due to the extension of its production capacity. The company exports 38% of its sales to more than 40 countries and has 32 production plants, as well as various distribution centers in the US and Latin America. Its workforce holds more than 25,000 employees.
• A factoring line for customers was authorized for 369 million MXN to a Mexican company leading the production of PET. Approximately 50% of its sales are exports, mainly to the US (USMCA region). The market target it aims at is controlled by the large bottlers, in the domestic as well as in the foreign market.
• A credit for 410 million MXN was granted to a company from the steel industry to finance its factoring to suppliers through the Supplier Pay Cash (SPC) platform. The credit line has a five-year maturity. With this credit, the Institution will support the customers that are part of the company's supply chain.
• A simple credit worth 328 million MXN was granted to a metal-mechanic industry company to finance an investment project aimed at the manufacturing of tunnels for the new Felipe Angeles Airport. This company exports 55% in a direct manner.

Center Regional Directorate

• Operations for letters of credit addressing the trade sector and the food industry for an approximate amount of 5,652 million MXN, in order to ensure delivery of inventory imports.
• Financing for up to 50 million MXN was granted to a company that covers the country's south - southeast area, specifically with presence in Tabasco, Campeche and Chiapas, this way supporting the region's economic development
• Three credit lines totaling 105 million MXN were granted for Working Capital, under the protection of the "Impulso PyME- [SME boost] program to suppliers for the construction of the Felipe Angeles Airport.
• Extension of revolving credit line to a company that contributes to the increase in exports of petrochemicals, in the industry of cosmetics, personal care, construction (cement), paints, metal-mechanic and other applications.

West Regional Directorate

• Participation in Syndicated Credit was authorized, with 348.6 million MXN in credit restructuring and after that in implementing Credit Default Swaps or a Guarantee with commercial banks (currently in process).
• The participation in Syndicated Credit was authorized, with 1,025.4 million MXN to finance CAPEX (Capital Expenditure) to the most important meat producing, processing and export company in Mexico. It has five production centers in the country: Durango, Sinaloa, Nuevo Leon, Michoacan and Baja California. The company generates more than 10,000 direct jobs and maintains trade relations with more than eighty thousand agricultural producers and cattle breeders. It exports $900 million USD annually (34% of its sales) under the protection of the USMCA.
• The Institution participated in the restructuring of the total banking debt of a company (approximately $1.3 billion USD). Bancomext is participating in two syndicated credits with a current balance of 2,431 million MXN.
• The Institution authorized the rescheduling of capital maturities for 92.7 million MXN (equivalent to 5.6% of the 1,668 million MXN balance) of a company, that had been programed for 2021, so that these end in 2022 and 2023.
• A Simple Credit for 123 million MXN was authorized for permanent working capital to a metal-mechanic company located in the border strip of Baja California.

Letters of Credit

By the end of 2021, Bancomext provided the service of letters of credit through credit lines and/or provision of funds aimed at companies that comply with the Institution's mandate, offering counseling and the follow-up to guarantee the issuance of the letters of credit.

The results obtained, by the end of December 2021, are the following:

• The balance reported was 4,089 million MXN, of which 2,155 million MXN correspond to letters of credit with risk exposure and 1,934 million MXN to letters with provision of funds.
• In terms of placement, new operations were issued for 7,064 million MXN, of which 6,967 million MXN correspond to letters of credit with risk exposure and 97 million MXN to letters with provision of funds.
• The income from commissions charged during the period reached 32.7 million MXN, of which 32 million MXN correspond to letters of credit with risk exposure and 662 thousand MXN to letters with provision of funds.

International Bodies: ECAs (Export Credit Agencies)

In 2021, the Institution continued with the analysis and structuring of several operations with different ECA counterparties, such as: UK EF, CESCE, EULER HERMES, BPI FRANCE, EKN, Eximbank US, EDC, KSURE, SINOSURE, etc. The estimated value of the operations consulted and analyzed is more than 7,177.5 million MXN.

The results obtained by the end of December 2021 are the following:

• An operation worth 410 million MXN authorized, with the guarantee of EKF with three disbursements pending and the ID file process of a customer requested by EKF.
• With the Eximbank from the US the negotiation of an Agreement was reactivated: “CoFinance CoGuarantee Agreement” to jointly participate in Export Credits and Guarantees of capital goods with Mexican and US content

The operations undergoing an authorization process are: the financing for equipment from England with UK EF for 717.8 million MXN; transaction consulted with EDC from Canada, Eximbank from the US, Euler Hermes from Germany and with EKN from Sweden for 922.8 million MXN; the operation in an initial consultation with Eximbank US and EDC from Canada for 131.2 million MXN; two operations in process with SACE from Italy, for an estimated amount of 2,563.4 million MXN; an operation in process with CESCE from Spain, for an estimated amount of 1,025.4 million MXN; a quotation-based operation together with JP Morgan, for an estimated total of 10,253.6 million MXN for the Ministry of Finance and Public Credit (SHCP for its acronym in Spanish), in which Bancomext could participate with up to 8,202.9 million MXN.

In addition, the Deputy General Director's Office for Corporate Banking served as liaison and representative of Mexico vis-à-vis:

• Working Party on Export Credits and Credit Guarantees of the OECD, with participation in different webinars and involving the persons in Bancomext in charge of specific areas such as Legal, Comptroller, Risks, Credit, Recovery and SARAS (acronym in Spanish for Environmental and Social Risk Management System).
• Berne Union, with the participation in the spring meeting of the Committee of ECAs, complying with information delivery and attendance at several webinars:
  • Participation in the Capacity Sharing Marketplace, SME Ecosystem and Climate Transition and Green2Green Solutions.
  • The invitation to the "Young Professionals" seminar was accepted, seminar for which four young people from the Institution signed up.
  • Participation in the Project Finance Webinar.

Corporate Guarantee

In line with the Federal Government's strategies, Bancomext, in coordination with private banking institutions, released the corporate guarantee product as an instrument to share the loan risk, to support medium-sized companies.

The results obtained by the end of December 2021 are the following:

• Approval of Guarantee with relation to a financing plan for 574.2 million MXN; the credit was used in whole on April 29th.
• A total of 10 operations worth 1,293 million MXN with different Financial Intermediaries were reviewed.

Santander and Bancomext have identified business opportunities to extend the Program; the proposal is for the Bancomext Guarantee to work as an Export Credit Agency (ECA) with the consensus of the OECD.

Factoring to Suppliers (SPC)

As part of the current administration's innovation strategy and in accordance with the support to small- and medium-sized suppliers of Mexican companies, a financial factoring platform with the brand BANCOMEXT was implemented. This initiative contributes to the Federal Government's digital and austerity strategy and positions the Institution as a Development Bank oriented towards innovation, administrative improvement and optimization in the use of resources.

The results obtained by the end of December 2021 are the following:

• Factoring lines worth 2,430 million MXN, that correspond to 10 buyers operating.
• Placement worth 3,137.6 million MXN in support of 44 suppliers.
• Factoring lines authorized for 984.3 million MXN for five buyers.

Prime Certification

Throughout 2021, the Institution continued promoting the program in the context of the pandemic caused by COVID-19; the purpose is for more Mexican companies to adopt the best practices of corporate governance.

The results were the following:

• Seven companies were certified.
• The first issuance in the securities market was carried out by a certified company from the construction sector.
• Participation in different webinars to promote and disseminate the program.

Public Sector

The performance of the public sector's portfolio balance is shown in the following chart:

Source: Prepared by the authors with data from Bancomext.

Financing Financial Institutions

Promotion Activities

The Deputy General Director's Office for Financial Institutions was created in 2007, under the name of Deputy General Director's Office for Promotion. Since its creation, its strategy has been to finance Mexican companies participating in foreign trade and companies that generate currencies, through a wide network of financial intermediaries, banking and non-banking, domestic and foreign. In coordination with this network of correspondents and through linking tools with SMEs and large companies (corporations), the Institution has managed to deliver to our customers the supply of products specializing in foreign trade.

Guarantee Programs

The goal of this program is to stimulate the placement of more credits for companies and, at the same time, improve the terms and conditions in which the credit is granted, such as the rate and the guarantees required to obtain the credit.

By the end of 2021, the promotion given to the Guarantee Program allowed supporting 2,691 companies with financing in better conditions. Said program recorded a balance of 18,046 million MXN by December 2021.

During the second half of 2021, the guarantee programs were reengineered, with the purpose of contributing to the economic recovery of the country's MSMEs (MIPyMEs for its acronym in Spanish), facilitating their access to financing:

Funding for Financial Intermediaries, Banking and Non-banking

Bancomext has strengthened its strategy to boost financing to foreign trade and to the activities generating currencies by granting resources to financial intermediaries, banking and non-banking, so that these, at the same time, grant credits to those companies operating in international markets or generating currencies, with specialized assistance in Bancomext's priority sectors.

The Funding Program for Financial Intermediaries recorded a balance of 28,637 million MXN in December 2021. On the other hand, the placement throughout 2021 totaled 32,849 million MXN, supporting a total of 457 companies participating in foreign trade and generating currencies.

As to Letters of Credit, one of the strategies is to build alliances to perform operations undertaken by small- and medium-sized Domestic Banks. For that matter, the balance of Letters of Credit with Domestic Banks was 1,653 million MXN by December 2021.

Factoring

International Factoring

The International Factoring Program offers to Mexican export companies liquidity on its accounts receivable for their export sales and at the same time, it helps them mitigate the risk that comes with selling abroad.

The services offered by the program are: risk coverage, management of accounts receivable, collection and financing services.

Throughout 2021, the International Factoring Program reported the expenditure of resources for 14,086 million MXN. Meanwhile, the balance as of December 2021 reached 3,338 million MXN.

A total of 199 companies were benefitted by obtaining instant liquidity on their accounts receivable abroad. These figures include FCI International Factoring and PrimeRevenue, International Factoring and they are structured as follows:

By the end of 2021, the number of invoices financed through the FCI platform (IMx) amounted to 45,804 invoices financed, distributed in 33 countries worldwide.

Suppliers

This program enables Bancomext to finance accounts receivable for suppliers of the large export companies. As of December 2021, the program reported a balance of 2,265 million MXN, supporting a total of 516 suppliers of 641 affiliated companies. In 2019 the bank’s own platform was created, to which the operation continues to migrate.

International Factoring Guarantee

This program finances accounts receivable from Mexican companies with export sales through Domestic Financial Intermediaries, offering the latter a guarantee of up to 100% for buyers abroad previously graded by Bancomext.

The program reported a placement of 1,514 million MXN throughout 2021, supporting seven companies. The balanced reached 307 million MXN in the same period analyzed.

Foreign Trade Guarantee

Guarantees Banking and Non-banking Financial Intermediaries residing abroad to cover the risk of payment default on the financing they grant their customers importing Mexican goods and services. This is carried out in order to promote and increase export activities. As of December 2021, a balance of 149 million MXN was reported.

Throughout 2019, the Institution guaranteed financing worth $8.5 million USD for a US company with a subsidiary in Coahuila. Said operation practically doubled the guarantees balance, which it currently maintains.

Letters of Credit with International Banks

As a result of the Bancomext strategy as supplier of this service and the ongoing promotion carried out with international banks, as of December 2021, a balance in this product totaling 6,425 million MXN was reported, whereas the placement reached 3,619 million MXN.

Currently, there are 89 graded counterparty risk lines with international banks from 35 countries. Said lines include all the businesses of the Deputy General Director’s Office (export and import letters of credit, international factoring).

More than 60% of the operations with this product are conducted with banks considered first-level banks, which gives Bancomext the certainty of compliance from its international counterparties.

Strategic Alliances

In 2021, Bancomext took part in various events, through the Deputy General Director’s Office for Financial Institutions, such as the Webinar Mujer Exporta [Woman Exports], with 89 participants.

The Institution also attended in a virtual format the 2021 REGAR Ibero-American Meeting "Guarantees 4.0: Exploring new ways to operate", as well as the 6th AMSOFIPO Convention “Technology for Sustainable Development ", and it was invited to the event from the Development Bank of Latin America CAF “Challenges for Development Banks in light of The Reactivation of SMEs In Latin America: Leaving The Pandemic Behind”.

Website www.bancomext.com

The Bancomext website on the Internet is updated on a regular basis to remain the primary electronic tool to promote and disseminate the products and services offered to companies associated with foreign trade, tourism and the generation of currencies. Throughout 2021, there was a total of 1,895,192 visits to the website; the following webpages stand out:

BANCOMEXT PyMEX

The Department of Product and Program Management is in charge of the website www.bancomext.com/pymex/, a webpage dedicated to Pymex (acronym in Spanish for: Small- and Medium-sized Export Companies), which registered 201,400 visits throughout 2021, with the following standing out:

In addition, the Institution has the Bancomext PyMEX App, which is dedicated to assisting PyMEX (acronym in Spanish for: Small- and Medium-sized Export Companies); it registered 11,428 views. The most visited tabs were:

BANCOMEXT PYMEX Strategy and the IFCCE

The IFFCE is made up of four main axes:

The means of distribution of the IFFCE’s offer are:

• The website www.bancomext.com
• The website www.bancomext.com/pymex
• The digital platform for online training
  www.aulavirtualbancomext.com
• Events in which Bancomext participates
• The APP Bancomext PyMEX

The results reported by this Institute are the following:

• A total of 16,437 new users registered at www.aulavirtualbancomext.com throughout 2021.
• Training and customized assistance has been given to approximately 89 natural persons through their participation in a webinar.

The Deputy General Director’s Office for Financial Institutions achieved by the end of December 2021, a total balance of 58,554 million MXN through its financial products. Likewise, it supported 3,354 small- and medium-sized companies, most of which are involved in foreign trade, tourism and generating currencies, this way seeking to fulfill the mandate of Bancomext.