IFC Supports Historic Bond Issuance to Boost Silver Economy in Mexico

IFC played a pivotal role by subscribing to 50 percent of the bond issuance with its own funds and facilitating the mobilization of the remaining 50 percent from other investors

The International Finance Corporation (IFC), a member of the World Bank Group, has backed a groundbreaking bond issuance by Consubanco to advance the silver economy in Mexico. The issuance, valued at 2.2 billion pesos (~US$129 million), represents a landmark event as it is the first listing on the Mexican stock market without a preceding debt offering.

IFC played a pivotal role by subscribing to 50 percent of the bond issuance with its own funds and facilitating the mobilization of the remaining 50 percent from other investors. The transaction was coordinated by i-Structure, a prominent firm specializing in financial innovation. The bonds are secured by the credit portfolio of pensioners from the Mexican Social Security Institute (IMSS), who are part of Consubanco's clientele.

Alfredo Flores, CEO of Consubanco, highlighted the significance of the issuance: "This transaction enables Consubanco to extend its services to a broader base of pensioners, retirees, and women—currently totaling over four million. We remain committed to providing the best conditions, rates, and ensuring a respectful and dignified treatment of our clients."

Juan Gonzalo Flores, IFC’s Country Manager for Mexico, added: "As people age, financial challenges and poverty risks increase due to insufficient savings, reduced income, and rising expenses. Statistics from the National Institute of Statistics and Geography (INEGI) reveal that only 38% of Mexicans aged 60 to 70 receive some form of credit, and a mere 2% receive personal loans. This collaboration with Consubanco underscores our commitment to enhancing the silver economy in Mexico and the broader region."

The silver economy, which focuses on meeting the needs of the elderly, is becoming increasingly significant as the global population ages. By 2050, Latin America and the Caribbean are expected to have at least 200 million people over 60, representing one in every four individuals. This demographic shift presents opportunities for the financial sector to offer tailored services to older adults, particularly women, who often face greater financial insecurity and longer life expectancy compared to men.

The IFC's support for this bond issuance aims to address these challenges and support the development of financial services that cater to the growing elderly population.